• January 25, 2010

Apple Inc. posted a 50% surge in its first-quarter profits, bolstered by strong holiday sales of the Macintosh. Sales of the iPhone came in just under analysts' estimates for the signature device.

Apple's net income rose to $3.38 billion, or $3.67 a share, from $2.26 billion a year ago. Revenue grew to $15.7 billion. The company said it sold 3.36 billion Macs in the quarter, beating Wall Street's forecast of 3.1 million to 3.2 million units. The 8.7 million iPhones sold, was slightly shy of the 8.8 million expected.

Apple's quarterly report comes just before the company is expected to unveil its long-awaited tablet device. "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about," said Apple CEO Steve Jobs in a statement, without offering further detail.

In addition to the Mac and iPhone, Apple sold 21 million iPod players in the quarter -- up 9%, including the redesigned Nano introduced by Jobs in September. Apple plans to open 45 to 50 stores in fiscal 2010, with half of those in locations outside the U.S. The company's stock closed Monday, up 5% to $202.87. --Mark Walsh