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Last Updated: Monday, 22 October 2007, 21:31 GMT 22:31 UK
Mac sales core to Apple profits
MacBook Pro

Apple saw its profits surge by 67% in the three months to the end of September, thanks to demand for its Mac computers and iPods.

The firm said it had also sold more than one million of its new iPhone, helping it make $904m (444.5m) in the period, against $542m a year before.

Sales tipped $6.2bn as Apple set a record for the number of its computers sold in a quarter.

Shares on Wall Street had risen 2.3% on anticipation of strong results.

The results comfortably beat expectations of analysts.

iPhone criticism

Apple said it had sold 1.12 million iPhones - towards the top end of predictions, while it also shipped 2.2 million Macintosh computers and 10.2 million iPods.

Analyst Tim Bajarin of Creative Strategies said that iPhone sales were raising awareness of the brand.

More and more people have become interested in the Mac because of Apple's ease of use
Tim Bajarin, analyst

"There's no question that Mac sales are still having a halo effect from the iPod and iPhone," he said.

"Our own survey of Apple stores shows that Mac [computer] sales continued to be strong even in this last quarter.

"More and more people have become interested in the Mac because of Apple's ease of use."

Shannon Cross, an analyst with Cross Research, agreed that Apple was "becoming again a Mac story".

Apple iPhone
The iPhone was launched in the summer

"The iPhone is very important to guidance - and iPods as well - but the Mac shipments were really strong and what really helped drive the upside this quarter."

The iPhone launched this year but has faced criticism that users cannot choose their phone network.

Instead, those in the US have to use AT&T, while UK users are tied to 02.

In France, Orange is the exclusive carrier for the iPhone.

But according to the country's laws the phones must also be available unlocked for use on other networks.

Shares in Apple have more than doubled since the start of 2007, and reached $183.75 in after-hours trade, having closed on the Nasdaq at $174.36.

"Apple shares going up to $200 by the year's end looks a lot more plausible today," said Rebecca Engmann Darst, analyst at Interactive Brokers Group.



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