SAN FRANCISCO - Apple Inc rode high on the iPod and the iPhone as it posted record earnings for the first quarter. Apple's profits rose 58 percent on a year-to-year basis, but the gloomy outlook for the future saw the company's shares stumble.
Apple revealed that it earned $1.76 a share or $1.58 billion during the first quarter on projected revenues of $9.4 billion. These figures compared favorably with $1.14 a share or $1 billion earned at the same time last year. They also stood out against estimates of $1.62 a share on $9.47 billion revenues forecast by a survey of analysts by Thomson Financial.
Strong product lines were credited for this stunning showing with Apple revealing that it sold 22 million iPods and 2.3 million Macintosh PCs during the three months ending December 31. Additionally 2.3 million iPhones were also sold during the same time.
"We're thrilled to report our best quarter ever, with the highest revenue and earnings in Apple's history," said Apple Chief Executive Steve Jobs.
However Chief Financial Officer Peter Oppenheimer shook Wall Street analysts by saying that the company expected to earn 94 cents a share on $6.8 billion revenues for the second quarter ending March. Analysts had predicted $1.09 a share on sales of $6.99 billion.
"We give guidance we believe we have reasonable confidence in achieving," Mr Oppenheimer said. "We remain confident in our business."
However investors were not assuaged as shares plunged 10 percent to $139.55 in early trading on the Nasdaq Stock Market.
