Apple Profit Surges on iPhone Sales

Apple Inc. continued to power through the recession as it posted a 47% quarterly profit jump as consumers continued to snap up its iPhones and Macintosh computers.

The company also sounded an upbeat note for the holiday season, despite new competition in the smart-phone and PC markets. Shares of Apple surged more than 6% after the results were released, eclipsing $200.

Apple sold 7.4 million iPhones in the quarter ended Sept. 26, up 7% from a year ago and 41% more than the previous quarter, bucking concerns of a supply constraint. Demand was fed by a price drop and a faster iPhone model announced in June, which it has been gradually rolling out in overseas markets.

"We feel very, very good about suiting up and competing against anyone," Tim Cook, Apple's operating chief, said on a conference call. "Frankly, I think that people are really just trying to catch up with the first iPhone that was announced two years ago, and we've long since moved beyond that."

Apple also sold 3.1 million Macintosh computers in the quarter, up 17% from a year earlier, as it continued to gain ground on Windows-based machines. In the quarter, Apple released Snow Leopard, a major upgrade to its Mac operating system, and it said initial sales have been double that of the previous upgrade two years ago.

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Apple Profit Surges on iPhone Sales - WSJ.com