Market joy as Apple rings up record iPhone sales

Apple's latest results have smashed Wall Street expectations after iPhone and Mac computer sales scaled new heights while iPad supplies struggled to keep up with soaring global demand.

The US technology giant said a record 18.65 million units of its already-iconic iPhone model were shifted in the quarter to March, outpacing the 16 million or so expected.

It also sold 4.69 million iPads - which command an 80 per cent share of a burgeoning computer tablet market in which Motorola and Samsung also compete.

Investors largely ignored the lower-than-expected sales for iPads during the period as company executives said they were scrambling to meet "staggering" demand and were heavily backlogged for now.

Chief operating officer Tim Cook said: "I'm not going to predict when supply and demand will come into balance. I can only be confident on supply side."

Apple's second generation iPad dominated the nascent market for tablets with competing products like Research In Motion's PlayBook receiving poor reviews from customers and experts.

The stellar results, released as the US markets closed on Wednesday night, came as concern is growing over how component supply constraints after Japan's earthquake and tsunami would squeeze margins and restrain iPhone and iPad sales in coming months.

Channing Smith, Capital Advisors Growth Fund portfolio manager, said: "Dynamite numbers across the board. The only hiccup is lower-than-expected iPad numbers.

"We can attribute some of the weakness to stocking issues at some of the retail outlets and obviously the supply chain issue in Japan. Unfortunately, the supply chain issue will likely persist for the coming months but once we get past summer and the issues are resolved it's all systems go again for Apple."

The group reported a net profit of $5.99 billion (3.6bn) for the quarter, while revenue surged 83 per cent to just below $24.7bn - well ahead of hopes.

The results were Apple's first under the stewardship of Cook after chief executive Steve Jobs went on his third medical leave in January. Cook said his boss - who has undergone a liver transplant and survived a rare form of pancreatic cancer - still played an active role in important decisions.

"He is still on medical leave but we do see him on a regular basis. He continues to be involved in major strategic decisions," added Cook.

"I know he wants to be back full time as soon as he can."

Apple's iPad sales in the quarter fell short of Wall Street's expectations. Some analysts had projected shipments of closer to or even more than six million for the updated tablet computer launched on 11 March.

But the lower-than-expected number could be attributed to the fact that Apple recognises revenue from its stores when its customers receive the products.The initial wait time for the iPad 2 was four to five weeks.

A spike in sales of Mac computers, driven by the refreshed MacBook Pro, also beefed up profits. Apple said it sold 3.76 million Macs, up 28 per cent from a year ago. The results came as the firm prepares to build the next iPhone model with a faster processor.

• Nokia's market share has fallen to 29 per cent from 33 per cent as nimbler Asian rivals eat into its dominant position in cheaper phones and it continues to lose out in more expensive smartphones to the likes of Apple.