Page last updated at 21:51 GMT, Tuesday, 21 October 2008 22:51 UK

Apple profits up on iPhone sales

Apple iPhone
The iPhone is proving to be a popular buy

Apple has seen a 26% rise in quarterly profits, boosted by sales of its iPhone, but warned that its Christmas figures may miss market expectations.

In the three months to 27 September, Apple made a net profit of $1.14bn (683m), compared with $904m for the same period last year.

Apple said it sold 6.9 million of the latest iPhone model during the period.

For the three months until the end of December, Apple said revenues may be just below Wall Street's $11bn target.

Revenues for the current quarter also just missed market expectations of $8bn, rising 27% to $7.9bn.

'Prudent' outlook

Sales of its computers were up 21% to 2.6 million units, while iPod shipments gained 8% to 11.1 million.

They posted very positive iPhone results, but the concern is for guidance on the December quarter
Shelby Seyrafi, Calyon Securities

Apple said it was unsure how it may be affected by any global economic slowdown, but that both its product range and balance sheet were solid.

"We may get buffeted around by the waves a little bit, but we'll be fine," said chief executive Steve Jobs.

However, Apple chief financial officer Peter Oppenheimer said it would be "prudent" regarding its Christmas sales targets.

"They posted very positive iPhone results, higher than people were expecting, but the concern is for guidance on the December quarter," said Shelby Seyrafi, analyst with Calyon Securities.

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