Leap In IPOD, MAC Sales Power APPLE

(From Combined Wire Services)

APPLE COMPUTER said Wednesday that third-quarter profit ROSE FIVEFOLD as sales of IPOD digital music players unexpectedly surged to a record and MACINTOSH COMPUTER SHIPMENTS reached a five-year high.

Net income rose to $320 million, or 37 cents a share, from $61 million, or 8 cents, a year earlier, CUPERTINO, CALIFORNIA-BASED APPLE said. Sales climbed 75 percent to $3.52 billion, the company's highest ever. Profit beat analysts' estimates for the seventh straight quarter.

"They've blown away the expectations," ROBERT O'DONNELL, an analyst at researcher IDC, said in an interview from MOUNTAIN VIEW, CALIFORNIA. "It's great news for APPLE."

A jump in IPOD shipments to 6.16 million, seven times as many as a year ago, allayed concerns that demand for the IPOD is waning. APPLE, which made its name selling MACINTOSH COMPUTERS, is now known for the IPOD, whose users range from BONO to THE QUEEN OF ENGLAND. Analysts, speculating the gadgets were losing their cachet, had expected shipments of 5.29 million.

Shares of APPLE rose 96 cents to $39.31 in extended trading. They earlier rose 11 cents to $38.35 in NASDAQ STOCK MARKET composite trading. The stock has gained 19 percent this year after more than tripling last year.

APPLE forecast fourth-quarter sales and profit that would miss analysts' estimates. Sales will be $3.5 billion, less than the $3.58 billion average estimate of 21 analysts surveyed by THOMSON FINANCIAL, and profit will be 32 cents, below the 33 cent average prediction.