Apple sells 37 million iPhones in record quarter as revenue reaches $US42 billion

Tech giant Apple has blown away investors’ expectations in announcing its best quarter yet, with $US42 billion in revenue and $US13 billion in profit, despite a slightly lacklustre period before Christmas sales picked up.

Among other astonishing results, the iPhone maker lifted its cash-on-hand to $US97 billion. Chief executive Tim Cook also predicted in an earnings call that the company’s tablet business could one day exceed the PC market, in units.

Apple shares rose 7%, or $US30, in after-hours trading.

The sales result comes as the company rides a wave of success following the release of its iPhone 4S, ahead of a predicted announcement of a third version of the iPad tablet in March.

Revenue was $US46.3 billion, with a profit of $US13.06 billion. There were 37 million iPhones sold – up from 17 million – plus 15 million iPads (up from 11.1 million) and 5.2 million Macs (up from 4.89 million).

And although 15.4 million iPods were sold, the figure was down 21% over the year – expected by analysts as iPhones cannibalise sales of the traditional music player.

“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” Cook said. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”

Cook added that more than 600,000 copies of the new iBook Author software had  been downloaded, 85 million customers had subscribed to iCloud and retail stores were seeing an average of 22,000 customers per week.

Most surprisingly, Apple confirmed it now has $US97.6 billion in cash on hand, and although the company didn’t announce any plans, chief financial officer Peter Oppenheimer said the company didn’t plan on “letting it burn a hole in our pocket”.

The giant revealed a number of other fascinating tidbits. Cook did not directly address rumours of an upcoming Apple TV, but he acknowledged the current box as a hobby.

“Our Apple TV product is doing quite well… but in the scheme of things, we still classify Apple TV as a hobby. We continue to add things to it. If you’re using the latest one…I don’t know about you, but I can’t live without it.”

Cook also acknowledged the iPad was cannabalising Mac sales, but said it was cannabalising Windows sales even more. He said there currently wasn’t competition that could dethrone the Apple gadget from its dominant position.

“[I think] there will come a day that the tablet market is larger than the PC market,” he said.

“I think people really want to do multiple things with their tablets; as a result, we don’t really see these limited-function tablets – these e-readers – as being in the same category. I don’t think people who want an iPad will settle for a limited function.”

Overall, Apple has now sold 315 cumulative iOS-powered gadgets.