Apple Q1 profits grow as iPhone shipments boom

IDG News Service - Apple on Monday reported growth in revenue and net income for the first quarter of 2010, buoyed by strong iPhone and Mac shipments.

The company reported a net profit of $3.38 billion for the quarter ended Dec. 26, compared to $2.26 billion in the first quarter of 2009. The company reported earnings per share of $3.67, which beat estimates of $2.09 from analysts polled by Thomson Reuters.

The company reported revenue of $15.68 billion, which was higher than the $11.88 billion in revenue in last year's quarter.

Apple shipped 8.7 million iPhones in the quarter, a growth of 100 percent over the first quarter a year ago. Apple shipped 3.36 million Macintosh computers during the quarter, a 33 percent increase over the year-ago quarter. However, iPod shipments declined by 8 percent during the quarter to 21 million units.

Apple estimated revenue for the second quarter of 2010 to be in the range of $11 billion to $11.4 billion, and earnings per share of $2.06 to $2.18. Analysts are estimating second-quarter revenue to be around $10.37 billion.

"The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about," said Apple CEO Steve Jobs in a statement. Apple is scheduled to hold an event on Jan. 27 where it may launch a tablet device, which observers say could be a handheld device with a touch screen for users to view Internet content, play games and watch television.

During the first quarter Apple adopted a new accounting standard that changes how the company accounts for items including the sales of iPhones and Apple TV.