Apple 3Q net income jumps 78 percent

(AP Photo/Eric Risberg, file)
July 20, 2010 7:28:22 PM PDT
Apple shareholders are all smiles. The company says the iPhone 4 and iPad are selling faster than they can be made. Investors couldn't be happier with their Apple stock.

Apple CEO Steve Jobs calls this a phenomenal quarter saying, "it exceeded our expectations all around."

The Cupertino-based company reported record revenue of $15.7 billion -- up 61 percent from a year ago and iPhone sales drove the growth with 8.4 million units sold, up 61 percent over last year.

Even apple's computer sales set a quarterly record with nearly 3.5 million Macs sold up -- up 33 percent. The numbers shattered even Wall Street's high expectations.

"It's pretty impressive. No matter how you look at it, you just have to figure, Apple is doing a lot of right things, right now," Marketwatch technology reporter Rex Crum said.

Despite the much talked about reception problems of the iPhone 4, CEO Steve Jobs says sales of the iPhone have been "well over 3 million" since its release June 27.

For third quarter earnings, only the first three days of sales will count, but that still amounts to 1.7 million devices.

There is also anticipation iPad sales will boost revenues. The company sold 3 million iPads in the first 80 days of sales. "That's an amazing feat for tablet computing in general and I expect it to take off," iPad owner Kurt Collins said.

So does Apple management, which says even they are blown away by the incredible demand.

Apple expects the roll to continue, predicting this quarter will be its best and generate $18 billion in revenue.

"They have back to school season coming up, and right after that Christmas shopping season coming up. We're coming up on the real busy time for Apple," Crum said.

The iPad will also go on sale in nine more countries on Friday.


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