Surge in Apple iPod sales quells concerns that demand had peaked

Connie Guglielmo, Bloomberg

The sales eclipsed the 5.29 million average estimate of eight analysts surveyed by Bloomberg News.

Apple, who employ 800 people in Cork, generated record iPod sales in a quarter that’s typically less robust than other periods, signaling shipments will continue to grow, Munster said.

Apple, which made its name selling Macintosh computers, now gets a third of its revenue from the iPod, first unveiled by chief executive officer Steve Jobs in 2001. The gadget has attracted users ranging from Bono to the queen of England. Profit in the quarter ended June 25 rose fivefold to $320 million (265m), or 37 cents a share, Apple said last night. Revenue climbed 75% to $3.52 billion (2.9bn). Sales and profit rose to the highest-ever levels and beat analysts’ estimates for the seventh straight quarter.

Wal-Mart Stores Inc, the largest US retailer, began carrying the players during the quarter and may have generated the higher- than-expected sales, said Steven Lidberg, at Pacific Crest Securities Inc in Portland, Oregon.

Sales of iPods through Hewlett-Packard Co accounted for 8% of total shipments.