Apple crushes estimates with iPhone, iPad

Apple has reported staggering quarterly results, achieving almost half of its previous financial year's net income in just three months on the back of record iPhone and iPad sales.

The company sold 37.04 million iPhones, representing 128% growth year-on-year in a market analysts say has grown around 40%. 

All signs were good for Apple going into the quarter – as well the launch of the iPhone 4S in October, the company was counting an extra week in its calendar, and of course the quarter ended with the Christmas shopping season. 

Even so, the previous record was 20.3 million – for the quarter ended June 25 – and analysts were only predicting around 30 million sales. 

As for the iPad, 15.4 million units were sold, a 111% increase year-on-year. 

Tim Cook, Apple CEO, says in a conference call announcing the result that he expects iPad sales to continue to grow.

"We already see different indicators that there's significant momentum," Cook says.

Asked about the impact of new, cheaper entrants to the market, Cook says, "I think people really want to do multiple things with their tablets, therefore we don't really see limited function tablets and e-readers as being in the same category.

"Last year was supposed to be the year of the tablet – I think most would agree it was the year of the iPad, for the second year in a row."

Apple's revenue for the quarter was US$46.33 billion, with net profit of US$13.06 billion. The company has a massive US$97.6 billion in cash reserves.

5.2 million Macs were sold, a 26% year-on-year increase in a market analysts indicate is experiencing 0% growth. About half of the 1.1 million Macs sold in stores were purchased by users who had never owned a Mac before. 

A replay of Apple's earnings conference call will be available around 2pm NZ time, go here to listen.