Apple profit beats expectations, led by strong iPhone, iPad sales

Apple Inc. is keeping up its economic momentum, selling 35 million iPhones and 12 million iPads on the way to its best second quarter ever.

The company reported $39.2 billion in revenue, including $11.6 billion in profit, a near-doubling in earnings over the same quarter a year ago. The results once again surpassed the expectations of Wall Street analysts, who have repeatedly underestimated the company’s rapid global growth. The Wall Street consensus was for profits of $9.4 billion on revenue of $36.9 billion.

The results prompted a rapid upswing in Apple’s stock price after hours, with the share price shooting up more than $32, or close to 6%, more than offsetting the 2% loss during regular trading.

“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Apple chief executive Tim Cook in a statement. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”

Still, the company that a few months ago seemed invulnerable -- earning the title of world’s most valuable company by stock value, with shares sailing to an all-time high of $644 -- has begun to show signs of wear.

Before Tuesday’s earnings results, the company’s stock had dropped 13% since its peak on April 10, a loss of nearly $80 billion in market value. Its losses continued on Tuesday during regular trading, with the stock dropping $11.42, or 2%, to $560.28. The drop dragged down the Nasdaq composite index 0.30%, even as the Dow Jones Industrial Average rose 0.58%.

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