San Francisco: Apple's holiday quarter was especially sweet this year, but Wall Street's response was muted as investors puzzled through an accounting change and lighter-than-expected iPhone sales.
Apple Inc. posted its most profitable quarter yet in the October-through-December period after selling twice as many iPhones and 33 percent more Macintosh computers as the year before.
But the company also changed how it accounts for revenue and profit from the iPhone, making it difficult for investors to see at a glance whether Apple lived up to Wall Street's forecast.
Shares of Apple crept up less than 1 percent in extended trading after ending the regular session Monday ahead $5.32, or 2.7 percent, at $203.07.
Apple's shining report reflected the company's ability to lure shoppers without deep cuts to its premium prices, despite tough economic times. The iPhone's rollout in several major new markets, including China and South Korea, helped Apple double sales of the hot gadget to 8.7 million.
Still, Shaw Wu, an analyst for Kaufman Bros., was expecting Apple to sell about 800,000 more of the popular smart phone. He attributed the lower number to possible component shortages.
Mac sales were also strong, and while the 21 million iPods Apple sold marked an 8 percent decline, analysts were expecting it. Sales of the iPod have suffered as the iPhone, which has iPod features built in, has grown in popularity.
Apple's numbers also got a boost from an accounting change. Apple started putting iPhone revenue and profit on its books when the gadget is sold, rather than deferring those results over the presumed life of the device.
Analysts hadn't factored the change into their estimates for the quarter. Wu said that until he goes back to re-crunch the numbers, he is basing his opinion on the number of iPhones, Macs and iPods Apple sold in the quarter, and on the nearly $6 billion increase in Apple's cash stockpile.
"That number looked pretty solid," Wu said.
Apple said Monday it earned $3.4 billion, or $3.67 per share, in the latest quarter, which ended Dec. 26.
In the same period of 2008, had the same accounting standards been in place, it would have had net income of $2.3 billion, or $2.50 per share.
