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Apple's Earnings Soar

The company had a great quarter. EPS came in at $1.16, nine cents ahead of Wall Street's estimates. Mac sales jumped 51%.

Buoyed by unusually strong Macintosh sales, the company grew notably faster than the rest of the computer market worldwide in the first three months of the year. Revenue increased 43 percent from the same period a year ago, the company reported. Steven P. Jobs, Apple's chief executive, characterized the quarter as the strongest in Apple's history.

He attributed the growth to higher traffic in the company's 181 stores in the United States. The company reported that it had 33.7 million visitors to its stores in the United States, up 57 percent from the same quarter a year ago. Mr. Jobs said that belied the gloom that was being expressed about the American economy.

"We're not economists, so we don't have any more insight than everyone else, but there were sure a lot of people in our stores last quarter," Mr. Jobs said in an interview.

Despite new products like the iPhone, variations of the iPod and the Apple TV set-top box, this was a Macintosh quarter. Apple shipped 2.3 million Mac computers in the quarter, 51 percent more than in the quarter a year ago. Revenue on those computers increased 54 percent.

But it also said it sold 10.6 million iPods during the quarter, flat with the year-ago quarter. Analysts said iPod sales were within their expectations and that it was a sign that the product category was maturing,

"The big question was, would Apple really feel the pinch from a weakening U.S. consumer? And the somewhat unequivocal answer was, no, not yet," said A. M. Saggonaghi Jr., a senior analyst at Bernstein Research.