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Apple posts record Q3 profits

Apple profit up 125% to $7.31 billion off back of iPhone and iPad sales

Apple posts record Q3 profits
Apple said sales of its iPad and iPhone were strong in Q3.

Apple has posted record revenue for its financial third quarter, with income growth almost double analyst expectations.

The company reported net profit of $7.31 billion, for the three months to 25th June, up 125% from the same quarter last year. Revenue also broke quarterly records, at $28.57 billion.

Financial analysts had predicted net income growth to be up to 65%.

Sales of iPhones and iPads were given as the main source of growth, with sales of iPhones up 142% year-on-year, to 20.34 million units, while iPad sales were up 183% to 9.25 million units. Sales of Macs were also strong, up 14% to 3.95 million units, but sales of iPods declined to 7.54 million units, a 20% drop.

Steve Jobs, Apple's CEO said in a statement: "We're thrilled to deliver our best quarter ever, with revenue up 82% and profits up 125%," said Steve Jobs, Apple's CEO. "Right now, we're very focused and excited about bringing iOS 5 and iCloud to our users this fall."

"We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131% year-over-year," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50."

Apple also announced that the latest version of its Mac OS X operating system, called Lion, will go on sale today.

On Tuesday the Wall Street Journal reported that several members of Apple's board have been in external discussions around replacing Jobs as CEO. Jobs has been on extended leave from the company this year, due to ill health. WSJ cited sources familiar with the situation that Apple's board had been in discussions with executive recruiters and an un-named head of a high profile technology company to consider options for succession.

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