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Apple's positive earnings report has the iPhone to thank

October 26, 2012

Apple announced in its quarterly earnings report that profit rose 24 percent to $8.22 billion, but product overhauls will put pressure on profit margins.

Apple said its fiscal Q4 profit increase was largely because of a surge in sales of the iPhone, a product that now accounts for nearly half of the company's sales, according to an article on startribune.com.

The profit report was slightly below analysts' expectations, and Apple's stock was largely unchanged in after-hours trading. It had fallen 1.2 percent to $609.54 in regular trading, the article reported.

In a conference call with analysts, Tim Cook, Apple's chief executive, said demand for the new iPhone was "extremely robust" and that the company had a significant number of back orders for it. He said production had picked up substantially since earlier this month.

Revenue from the iPhone rose 56 percent to $17.13 billion, making up 48 percent of the company's total revenue. It sold 26.9 million iPhones, 58 percent more than a year earlier.

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