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Apple reports record Q3 earnings

  • Story Highlights
  • Computer, iPhone sales prod strong third-quarter results, company says
  • Quarterly sales of iPhones up 626 percent from last year, Apple says
  • Supply issues over strong demand has delayed latest iPhone release
By Richard Benson
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(CNN) -- Fueled by strong computer and iPhone sales, Apple had a robust third quarter -- posting a 15 percent jump in net profit compared with last year.

Apple sold 2.6 million Macintosh computers and 5.2 million iPhones during the quarter -- a 626 percent unit growth for the iPhone over the year-ago quarter.

"We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history," said Peter Oppenheimer, Apple's CFO.

The company reported a net quarterly profit of $1.23 billion, or $1.35 a share, on revenue of $8.34 billion for the quarter ending June 27.

This time last year, earnings were $1.07 billion or $1.17 a share on $7.46 billion in revenue.

"Even though expectations were low, the record earnings really aren't surprising," said Roger Tutterow, economics professor at Mercer University in Macon, Georgia. "Early numbers last week from the technology firm Intel were pretty strong as well so it's probably an indication that despite a global economic recession some of the technology companies are holding up pretty well."

While many companies right now are having a difficult time staying afloat financially, Apple's main issue seems to be stocking enough iPhones.

The demand for the product is so overwhelming that the company has been forced to delay by a few weeks the introduction of their latest iPhone, the 3GS, in roughly 60 countries.

It is already available in 18 countries.

Products like the iPhone have allowed Apple to be a trend setter in the industry, Tutterow said.

"Apple has historically tried to be an innovator in terms of product, not only on the PC side, but also in terms of the iPhone. They have done quite well," he said.

Not all news was rosy for Apple, however.

The company sold 10.2 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter.

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