Wall Street knew Apple Inc's results for the most recent quarter would blow past the company's guidance, but investors clearly were not prepared for the 47 per cent jump in profit that Apple delivered.

Apple's financial report "reinforces my view that Apple is hands down the best technology company on the planet," said Broadpoint AmTech analyst Brian Marshall in an interview.

Apple unveiled a faster iPhone in June and cut the price of the previous generation of the phone to US$99.

Running start

Those moves boosted iPhone sales from July through September to 7.4 million devices, half a million more than in the same period of 2008, despite shortages of the newest iPhones that persisted through the quarter.

Apple weathered the economic meltdown better than other computer companies, giving it a running start when PC sales grew in the quarter. Apple had also updated its Mac operating system and refreshed its MacBook Pro line. Apple sold 3.1 million Macs, a 19 per cent rise from the same period a year ago.

As Apple's iPhone, which has iPod features built in, has grown in popularity, Apple's regular iPod music player business has suffered. The company sold 10.2 million iPods in the quarter, eight per cent fewer than last year, even though Apple unveiled a new iPod Nano with a video camera in September.

Revenue rise

But even with the number of iPods dropping, iPod revenue rose in the quarter. That means people are trading up, Marshall said buying a Nano to replace a Shuffle, or an iPod Touch to replace a Nano. Revenue for the iPod Touch, which is like an iPhone without the phone, doubled from a year ago, Apple Chief Financial Officer Peter Oppenheimer said.

Apple said it earned US$1.7 billion, or US$1.82 per share, in its fiscal fourth quarter, which ended September 26. Revenue jumped 25 per cent to US$9.9 billion.

For all of fiscal 2009, Apple said its profit rose 18 per cent to US$5.7 billion, or US$5.36 per share. Revenue climbed 13 per cent to US$36.5 billion.

For the current quarter, Apple said it expects to earn US$1.70 to US$1.78 per share, well below the US$1.91 that analysts are expecting, though the company traditionally gives extremely conservative guidance.

Apple predicted revenue of US$11.3 billion to US$11.6 billion, while analysts are looking for US$11.4 billion, according to a Thomson Reuters poll.

Wall Street shrugged off the profit guidance and sent the company's shares up.

At one point in the after-hours trading, the stock climbed past US$203. Adjusted for splits, Apple's highest price had been US$202.96, reached December 27, 2007.

- AP