Apple Profit Rises on Strong Mac, iPod Sales

SAN FRANCISCO (Reuters) – Apple Inc (AAPL.O: Quote, Profile, Research)on Wednesday posted a 36 percent rise in quarterly profit, helped bystrong sales of its Macintosh computers and iPod media players, but itscautious outlook disappointed investors.

Apple shares edged lower after the company, known for conservativefinancial forecasts, also gave a profit outlook for its current quarterthat was below Wall Street estimates.

Apple said it expected earnings of $1.00 per share on revenue of$7.2 billion for its fiscal third quarter. Wall Street was looking forearnings per share of $1.11 and revenue of $7.17 billion, according toReuters Estimates.

Net profit for its fiscal second quarter ended in March was $1.05billion, or $1.16 per share, compared with $770 million, or 87 centsper share, a year ago. Revenue was $7.51 billion, up 43 percent.

The results beat the average analyst forecasts for revenue of $6.95billion and earnings per share of $1.07, according to Reuters Estimates.

The company said it sold 2.29 million Mac computers in the quarter,topping the 2.04 million to 2.2 million range of five analysts’forecasts.

Apple sold 10.6 million iPods and 1.7 million iPhones in thequarter. Analysts were mostly looking for iPod shipments in the rangeof 9.5 million to 11 million, and iPhone sales in the 1.4 million to1.8 million range.

Shares of Apple initially rose about 4 percent on the report, butquickly erased gains to trade at $159.25 versus their Nasdaq close of$162.89.

(Reporting by Scott Hillis; Editing by Braden Reddall)