Apple strengthen core with huge profits

Apple Profits

It would appear Google are not the only tech-giant left wondering whether this "recession" happened at all. Apple have casually shrugged off the global economic downturn with its most profitable quarter after sales of its iPhone and PC brought in huge profits for the California-based company.

An updated iPhone in June and a new version of its operating system for its Mac computers in August helped the company to raise profits by nearly 50 percent on the same quarter a year ago. The net profit was $1.67 billion, in its fourth quarter to 26 September, up from $1.14 billion, in the same period a year ago. Analysts were expecting a profit of $1.42 a share. The results sent Apple's shares to a new high of $204 in after-hours trading, up 7.5 percent.

This is excellent news for Apple in the wake of rival Google announcing huge profits this year, and just as Microsoft is set to launch its new Windows 7 OS later this week.

Premium products

As Google CEO Eric Schmidt felt the need to declare that "the worst of the recession is clearly over" for Google, Apple chief Steve Jobs spoke about his company's success saying he was "thrilled" at selling more Macintosh computers and iPhones than in any previous quarter.

The company sold 3.1 million Macs, a 19 percent rise from the same period a year ago.

Jobs was clearly excited about the future, saying: "We've got a strong line-up for the holiday season and some really great products for 2010."

It was the release of the improved iPhone in June that helped to boost sales, coupled with the price cut of the previous version as Apple shifted 7.4 million units.

The launch of Apple's latest operating system, Snow Leopard, had also driven sales of new computers, said Dan Akerman, senior editor at CNET.com.

Apple set for "great Christmas"

Jane Sorek of First American Funds said the results were "huge" for Apple, and would set them up for a "great Christmas."

All this talk about the recession leading to a dramatic fall in consumer confidence obviously hasn't applied to the tech sector, where the large companies seem to be going from strength to strength.

But in the midst of all these profits, its Apple that seem to be pipping the rest to the post.

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