Apple, caught between the promise of its new iPhone and the peril of a stock options investigation, reported record earnings Wednesday for the first quarter of its 2007 fiscal year.
Apple posted net income of $1 billion (£507m), or $1.14 per diluted share, on revenue of $7.1 billion, for the quarter ended 31 December 2006.
These results compare to net income of $565m, or $0.65 per diluted share, on revenue of $5.7 billion in the during the like-for-like period during the previous year.
The company, which dropped the name "computer" from its name to reflect its broadening array of consumer electronics products, such as its popular iPod music player, reported a gross margin of 31.2%, up from 27.2% from a year ago.
"These are stellar results," said Apple chief financial officer Peter Oppenheimer, told stock analysts.
Apple sold 1.6 million of its Macintosh computers and more than 21 million iPods in the quarter, which covered the holiday shopping season – up 28% and 50%, respectively, from the same quarter a year ago, Oppenheimer said.
Apple released its latest financial results one week after chief executive Steve Jobs unveiled the new iPhone at the company's annual Macworld Conference & Expo in San Francisco. Although well received by Mac fans at the convention, some sceptics wonder whether its high price will attract many buyers (to be confirmed around $500, or £279, when it first goes on sale in the US in June) plus subscription costs.
Apple was promptly sued in US federal court by Cisco, which claims the trademark to the name iPhone.
Oppenheimer characterised the suit as "silly" and Cisco's trademark claim as "tenuous at best".