Apple results top targets, Mac sales strong

By Scott Hillis

SAN FRANCISCO (Reuters) - Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz) blew by analysts' estimates with a 67 percent rise in profit on Monday as the popularity of its iPhone and iPod boosted Macintosh computer sales, and its shares jumped 7 percent.

"There's no question that Mac sales are still having a halo effect from the iPod and iPhone," said Tim Bajarin, president of technology consulting company Creative Strategies.

Net profit climbed to $904 million, or $1.01 per share, in its fiscal fourth quarter, from $542 million, or 62 cents per share, a year ago. Revenue rose 29 percent to $6.22 billion.

That handily beat Wall Street's average targets of 85 cents per share in profit and $6.06 billion of revenue, according to Reuters Estimates.

Apple also benefited from falling prices of electronic components, lifting its gross profit margin to 33.6 percent. The company said it expects that to fall to 31 percent in its current quarter as prices for some parts start to rise again.

Apple also forecast first-quarter profit of $1.42 per share and revenue of $9.2 billion, ahead of the $1.40 per share and $8.7 billion that were the average Wall Street targets.

"It appears that they are expecting an extremely solid holiday shopping season and, I would guess, strength from the launch of the iPhone in Europe," said analyst Shannon Cross of Cross Research.

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