Apple Computer posted a 48 per cent jump in quarterly net income as sales of iPods and Macintosh computers topped expectations, sending shares more than 8 per cent higher.
Apple said it shipped 8.11 million iPods, up 32 per cent year over year and beating some analysts' estimates of as low as 7.5 million.
Sales of Macs, which are more profitable than iPods, rose 12 per cent to 1.33 million, against expectations of about 1.3 million.
The iPod shipments appeared to calm investors' worries that growth in that red-hot business was slowing, and Apple Chief Financial Officer Peter Oppenheimer said in an interview that its share of the US retail notebook market had doubled to 12 per cent as measured by units in June from January.
Apple chief executive Steve Jobs pointed to the rise in computer sales in a statement. "We're thrilled with the growth of our Mac business and especially that over 75 per cent of the Macs sold during the quarter used Intel processors."
iPod revenue in the second quarter was $1.71 billion, or 39 per cent of Apple's overall revenue and down from 67 per cent in the prior quarter, representing the increasing strength of the Mac line that's now powered by Intel chips.
Based Tuesday's closing prices, Apple shares this year have declined 26 per cent, compared with a 12 per cent decline in the Morgan Stanley High Technology Index, of which Apple is a component.
Apple stock more than doubled in 2005, after tripling in 2004, largely on booming sales of the iPod. Shares of Apple rose $1.15, or 2.2 per cent, to close at $54.15. In extended trade, they rose 8.5 per cent to $58.75.