• Mercury News et al., Wednesday, July 21, 2010 2:21 PM

Forget about those mobile hardware issues, continued concerns over 'closed' networks and operating systems, and the threat of ad network-related antitrust regulation. From the Valley to the Alley, huge third quarter earnings and revenue made Apple the toast of the industry on Tuesday.

"Runaway sales of iPhones and iPads -- as well as a surprise surge of Macintosh computer sales -- gave Apple record-breaking revenues for its third quarter," reports Mercury News.

"Apple is now benefiting from what we are dubbing a 'Cascade of Cool' -- three strong, synergistic product cycles -- iPhone, iPad and Mac, combining together synergistically to drive the strongest outperformance in 4 years writes RBC's Mike Abramsky in a research note.

During the quarter -- which saw the launch of the iPhone 4 and the iPad -- Apple posted a 61% jump in revenue to $15.7 billion, and an increase in earnings of 78%. "It's a jaw-dropper," Apple Chief Operating Officer Tim Cook said on a conference call with analysts.

"More and more, people's lives are dependent on desktop and mobile computing," Gene Munster, an analyst with Piper Jaffray, tells The New York Times. "People realize that and are willing to pay up for it, and Apple is capitalizing on that."

Furthermore, "Apple is now a multifaceted company, and it continues to defy the economy," Shaw Wu, an analyst with Kaufman Brothers, tells The Times.

Needham & Co. analyst Charles Wolf said the real surprise for the quarter was Mac sales. (He predicted Apple would sell about 500,000 fewer laptops and desktops than the 3.47 million it did.) "You have to believe the iPhone is having a halo effect (on Mac sales)," he told Mercury News. "The growth outside the United States is just phenomenal."

Digital Daily rounds up the rest of the analyst gushing, noting the only concern around Apple's Q3 earnings is whether the company can sustain such impressive growth. "Investors will wonder if the pace of growth is sustainable," asks Piper Jaffray's Munster. "We believe it is, given Apple has small market share in large, growing markets."

In a note posted by eWeek, iSuppli's Rhonda Alexander wrote: "The key to continuing success will be how quickly Apple responds to issues as they arise and whether the company can align suppliers to meet demand needs."

Read the whole story at Mercury News et al. »