Emerging Technology

Apple profit soars on iPhone sales, but Yahoo results disappointing

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Computer giant Apple has released its September quarter results, recording a profit boost of 26% thanks to record iPhone and Macintosh computer sales.

Computer giant Apple has released its September quarter results, recording a profit boost of 26% thanks to record iPhone and Macintosh computer sales.

The group’s sales rose 27% to $US7.9 billion in the three months ending 27 September, with net profit rising from $US904 million to $US1.1 billion. Apple’s shares rose $US10.58 to $US102.07 after the announcement.

“Apple just reported one of the best quarters in its history, with a spectacular performance by the iPhone – we sold more phones than [BlackBerry manufacturer] Research In Motion,” CEO Steve Jobs says in a statement.

The group’s iPhone device, originally released last year and updated with a 3G version in July, sold over 6.8 million units during the quarter, while 2.61 million Mac computers were shipped.

But it hasn’t been all smooth sailing for Apple; the company’s shares have dropped 54% this year.

But Jobs is confident the company can weather the downturn. ”We don’t yet know how this economic downturn will affect Apple, but we’re armed with the strongest product line in our history.”

Meanwhile, Yahoo is struggling, after reporting a 64% drop in profit and announcing plans to slash 10% of its workforce. The group’s sales rose 3% to $US1.33 billion for the same quarter.

Third-quarter income fell to $US54.3 million from $US151.3 million, while the company’s shares fell US79 cents to $US12.07.

The group is suffering after walking away from a takeover bid from Microsoft, and its stock has fallen by 48% this year.

While Yahoo is doing well in the display ad market, its promotional advertisements which run alongside search results are not performing well. Market advertisers prefer promotional ads because they give more accurate usage results.

Finance firm Barclays Capital expects the online display ad to grow 17% this year to $US8.3 billion, while search ad growth will surge ahead 22% to $US11 billion.

Read more on Yahoo and Apple

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