Apple shares surge more than 7% after ‘most profitable quarter ever’
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Sales of the iPhone jumped 7% in the fourth quarter. Credit: Paul Sakuma / Associated Press
Apple, barely noticing the effects of the sour economy, this afternoon posted a 17% jump in sales and an 46% surge in profit for its fourth quarter. The Cupertino, Calif., company recorded net income of $1.67 billion, or $1.82 a share, on sales of $9.87 billion during the quarter that ended Sept. 26. A year earlier, Apple had $7.9 billion in sales and net income of $1.14 billion, or $1.26 a share.
The results roundly beat Wall Street’s already lofty expectations of $1.3 billion in profit on $9.14 billion in sales, according to a survey of analysts by Thomson Reuters.
Apple characterized the results as its ‘most profitable quarter ever.’
Investors, who had earlier pumped up Apple’s stock $1.81 to close at $189.86, rewarded the company further in after-hours trading following the earnings release, driving its shares up by more than $14, or 7%.
Not everything Apple touches has turned to gold, however. Although the company sold 7% more iPhones and 17% more Mac laptops and desktops in the quarter compared with a year earlier, iPod sales fell 8%. For the quarter, Apple sold 3.05 million Macs, 10.2 million iPods and 7.4 million iPhones.
We’ll have more after Apple’s 2 p.m. conference call with investors.
-- Alex Pham
Follow my random thoughts on games, gear and technology on Twitter @AlexPham.