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Apple iPod sales slow but iPhone makes up for it

Nancy Gohring | July 22, 2009
Its third-quarter earnings are the best non-holiday results in Apple's history

SEATTLE, 21 JULY 2009 - Apple beat analyst expectations and appears nearly untouched by the economic downturn, reporting its best non-holiday quarterly revenue and earnings in the company's history on Tuesday (21 July).

For its third quarter ending June 27, Apple posted net profit of US$1.23 billion and $1.35 per share, up from $1.07 billion and $1.19 per share in the same quarter last year. Revenue reached $8.34 billion.

Analysts polled by Thomson Reuters were expecting $8.20 billion in revenue and $1.17 per share.

One low point in Apple's report is the declining iPod business, with unit sales dropping 7 percent compared to last year to 10.2 million iPods. But iPhone sales more than make up for that. In the quarter, Apple sold 5.2 million iPhones, 626 percent more than the same period last year.

Apple CEO Steve Jobs, who has only just returned to work after taking a sick leave, was quoted in the earnings report saying he's thrilled at the number of iPhones sold. He also confirmed that users have downloaded more than 1.5 billion applications from the iPhone App Store in its first year.

The company has scheduled a conference call for later Tuesday to further discuss the results.

 

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