Apple earning reports stun Wall Street but shares fall

Excellent Macintosh personal computers sales have pushed Apple's quarterly profits up by 36 percent as the company quelled fears about its consumers' response to the current economic gloom.

However, the company's share prices went south due partly to the fact that the company's earnings - at $7.51 billion - were below what was expected, reaching $162.31 in after hours trading, well below their 52-week high of $202.96.

Apple sold nearly 2.3 million desktop computers in the last quarter, a 51 percent unit growth and a 54 percent revenue growth year on year, pointing to an improved average selling price thanks to more higher priced models.

Sales outside the US accounted for 44 percent of the quarter’s revenue

iPods sales were essentially flat with 10.6 millions devices sold during the last quarter, an 8 percent revenue growth over the same period last year.

iPhone figures were quite interesting with 1.7 million models sold worldwide during the last quarter, which means that 5.4 million iPhones have been sold till now.

Apple will have to sell significantly more iPhones if it is to reach its own target of 10 milllion iPhones sold by the end of 2008.