Apple earnings sail past expectations

[Mac Reporter]

Buoyed by a surge in sales of both iPods and Macintoshes, Apple Computer on Wednesday reported first-quarter earnings that soared past expectations.

The Mac maker earned $295 million, or 70 cents per share, on revenue of $3.49 billion. That compares with earnings of $63 million, or 17 cents per share, on revenue of $2 billion in the same quarter a year ago.

Analysts predicted that Apple would earn 49 cents per share, with revenue of $3.1 billion, according to the average of analysts polled by Thomson First Call.

"We are thrilled to report the highest quarterly revenue and net income in Apple's history," Apple CEO Steve Jobs said in a statement.

Apple's earnings come a day after the company announced lower-price versions of both of its core products--the iPod and the Macintosh.

During the quarter, Apple sold about 4.5 million iPods, up from 733,000 sold during last year's holiday quarter. Hewlett-Packard-branded iPods accounted for about 7 percent of iPod unit sales, Apple said. The company would not provide details on how sales between the iPod, iPod Mini and iPod Photo were split.

Read more at CNET News.com.