Record iTunes sales ignite Apple's Q1 profits

Apple reported strong first quarter profits on the strength of best-ever sales for its iPod portable music device and accompanying iTunes download storefront. Apple's Q1 profits jumped to $1.61 billion from $1.58 billion a year earlier--revenue increased to $10.17 billion year-over-year from $7.9 billion. Analysts forecast Apple revenues of $9.74 billion. "Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history--surpassing $10 billion in quarterly revenue for the first time ever," said Apple CEO Steve Jobs in a statement. However, the earnings report coincided with news that the SEC is investigating the computing giant over how it has disseminated information on Jobs' health--last week, he announced he will take a six-month medical leave of absence.

Apple said it sold 22.7 million iPods during the quarter, up 3 percent from a year earlier, adding that surging music and video sales drove a record quarter for iTunes. According to Apple, iTunes experienced its highest sales totals ever on Christmas Day and Christmas week. The firm sold 4.36 million iPhone 3Gs during the holiday quarter, down from 6.9 million phones the previous quarter but close to double the 2.3 million iPhones sold in the year-ago quarter. Apple reports the total number of applications available for download via the App Store now tops the 15,000 mark--iPhone and iPod touch users have now downloaded more than 500 million applications in all.

For more on Apple's Q1 results:
- read this Variety article

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