Apple profits surge on iPod sales

Apple has reported a 78% surge in profits for the three months to 30 December, boosted by strong Christmas sales of its iPod digital music player.

It said its net profit for its fiscal first quarter rose to a record $1bn (£508m) from $565m a year earlier.

Also boosted by brisk sales of its laptops, the US computer firm said its revenues rose to $7.1bn from $5.8bn, again compared to the year before.

Apple's results were way ahead of market expectations.

Its net profit equates to $1.14 per share, while Wall Street was only predicting 77 cents.

Share surge

Apple sold 1.6 million computers and more than 21 million iPods during the quarter, growth of 28% and 50% respectively from a year earlier.

Shares in the firm rose 5% in after hours trading in New York following the release of the results.

Apple's stock increased 16% last year after more than doubling in 2005, and tripling in 2004.

Its shares have increased so strongly thanks to the surging sales of its iPods, and the increased popularity of its computers.

Apple's chief financial officer Peter Oppenheimer hailed the firm's latest results as a triumph.

"This one was for the record books," he said.

Apple last week unveiled its new iPhone product.