iPhone pushes Apple profits up and up

Apple sold 6.9 million iPhones quarter ending in September, helping it to a net profit of US$1.4 billion (€1.072 billion) - up 26% from the previous quarter. Profits beat analysts' expectations, despite lower than expected sales US$7.9 billion

Like so many others in recent days, Apple warned that it might not hit the targets it had set for the final quarter because of economic turmoil. It is now saying it expects income of between US9 billion and US10 billion, instead of the US$10 billion it had predicted.

Last year it earned US$9.6 billion in the same quarter. Analysts had been expecting estimates of US$10.b billion this year.

As Steve Jobs pointed out though, Apple is in an enviable position. He was quoted in the Financial Times saying, "We don't yet know how this economic downturn will affect Apple, but we're armed with the strongest product line in our history "&brkbar; and US$25bn of cash safely in the bank with zero debt."

Oh yes, and it looks like Apple will hit its target of shipping 10 million iPhones this year too.