Apple’s earnings soar as sales hit $3.24 billion

APPLE COMPUTER, maker of the iPod digital music player, said second-quarter earnings soared more than six-fold as the devices propelled sales and helped win new customers for more-profitable Macintosh computers.

Net income surged to $290 million, or 34 cents a share, from $46 million, or six cents, a year earlier, Cupertino, California-based Apple said in a statement yesterday. Sales rose 70% to $3.24 billion. The results topped Apple's forecast for profit of 20 cents on sales of $2.9 billion.

IPod shipments rose to 5.31 million players, and Apple sold 1.07 million Macs. Chief Executive Steve Jobs spurred consumer demand with the January release of the least-expensive Mac in the machine's 21-year history and a lower-priced iPod, a $99 version called shuffle that is helping woo first-time Mac buyers.

Sales will rise to $3.25 billion and profit will be 28 cents a share this quarter, Apple said. Analysts expected 24 cents on sales of $3.24 billion.

The iPod is the best-selling, hard-disk-based player in the US, capturing 85% of the market in the 12 months ended in February, according to Port Washington, New York-based researcher NPD Group.

Apple also hopes to court customers with a new version of the Mac operating system software designed to make it easier for consumers to use. The company said yesterday that Mac OS X Version 10.4, codenamed ‘Tiger’, will go on sale April 29.