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Wednesday, 19 April 2006, 22:48 GMT 23:48 UK

Apple profits lead US tech icons

Man looking at Mac computers, Getty Soaring sales of iPod players and MacBook laptops helped lift profits by 41% at Apple Computer.

The US technology icon reported earnings of $410m (£229m) during the first three months of 2006, up from $290m at the same time last year.

Apple's gains outshone those at US chip giant Intel, which reported a drop in first quarter earnings to $1.35bn.

Internet auctioneer eBay also reported a dip in earnings to $248.3m, on the back of stock compensation costs.

Ebay's first-quarter net income was down 3% on the same time last year, although the California-based firm said that - excluding one-off costs - its profits for the period would have risen by 20%.

Falling demand

Apple's strong earnings performance - which was unveiled after Wall Street's close on Wednesday - beat market expectations and boosted the firm's shares in out-of-hours trading.

The company is in the middle of a major transition which has seen it switch the chips used in its computers to those produced by Intel, in a move designed to allow it to compete with PC rivals better.

However, Apple's gains did little to improve fortunes at Intel, which blamed slowing demand for PCs for the drop in its earnings.

The company revised its full-year forecast, warning that it expected revenue to slip by about 3%.

Intel is facing stiff competition from rival AMD, and the value of its shares have fallen by almost a quarter in the past 12 months.



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Related to this story:
Windows on Macs provokes a stir (06 Apr 06 |  Technology )
Apple makes Macs run Windows XP (05 Apr 06 |  Technology )
Intel warns of weakened revenues (03 Mar 06 |  Business )
Intel to invest $300m in Vietnam (28 Feb 06 |  Business )
EBay ups forecast as profits jump (20 Jul 05 |  Business )
How to put the trust into trading (05 Apr 05 |  Technology )

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