Apple Profit Grows while Other Cos. Shrink

A customer displays an Apple iPhone 3GS at an Apple store in Palo Alto, Calif., Tuesday, July 21, 2009. Apple Inc., the closest thing the tech industry has to a luxury brand, said Tuesday its profit jumped 15 percent in the most recent quarter despite the recession. (AP Photo/Paul Sakuma)
AP Photo/Paul Sakuma
Apple Inc., the closest thing the tech industry has to a luxury brand, said Tuesday its profit jumped 15 percent in the most recent quarter despite the recession. Sales of Mac computers grew while the rest of the personal-computer industry shrank.

The company, which recently welcomed CEO and co-founder Steve Jobs back from a six-month medical leave, said earnings in the quarter that ended June 27 rose to $1.23 billion, or $1.35 per share. Apple's profit was $1.07 billion, or $1.19 per share, in the same period last year. Sales increased 12 percent to $8.34 billion from $7.46 billion in the year-ago quarter, which is the third in Apple's fiscal calendar.

Apple beat Wall Street's forecast on both counts. Analysts were expecting Apple to earn $1.17 per share on $8.20 billion in revenue, according to a Thomson Reuters survey.

"In a better economy I think we would have sold even more," Apple Chief Financial Officer Peter Oppenheimer said in an interview.

Apple said it sold more than 5.2 million iPhones in the quarter, more than seven times what it sold in the 2008 quarter, thanks to a newly released version of the device.

Apple's Mac computers also bolstered results. Apple sold 4 percent more Mac computers than a year ago. Meanwhile, researchers recently reported a 3 percent to 5 percent decline for the overall worldwide PC market in the same period.

The only weak spot was Apple's iPod line. Unit sales fell 7 percent.

Apple's revenue increased in every region, including the U.S. and Europe. Worldwide retail store revenue increased 4 percent from a year ago.

Shares of Cupertino, Calif.-based Apple jumped $3.45, or 2.3 percent, to $154.96 in after-hours trading, after slipping 91 cents to close at $151.51.