Apple shows it hasn't lost its touch

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Even a recession couldn't keep Apple from setting an earnings and revenue records for its best nonholiday quarter ever.

The company said Wednesday that its fiscal second-quarter profit jumped 15% to $1.21 billion on revenue that rose 9% to $8.2 billion.

Apple CFO Peter Oppenheimer also confirmed that CEO Steve Jobs is expected to return from his medical leave at the end of June.

Apple sold 11 million iPods during the quarter, up 11% from the year before, but only 2.2 million Mac computers, 3% fewer than a year earlier. It sold 3.8 million iPhones for a total of 21 million since that product launched two years ago.

Acting CEO Tim Cook said the key reason for the continued strength in iPods, selling about 1 million more than analysts had expected, was the popularity of the iPod Touch, where sales doubled year-over-year.

The iPod Touch and iPhone use the same touch-screen technology that has proved so popular. Together, they have sold about 37 million units, and Cook said those products put Apple years ahead of the competition.

With its iPod, Apple has about a 70% share of the market for MP3 players, according to NPD.

Apple shares traded down fractionally to $121.51 during the regular session Wednesday, then jumped 3% after the closing bell, when it reported earnings. (partialdiff)
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