Apple’s profit record rise

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 per cent 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 per cent in extended trading after ending the regular session Monday ahead $5.32, or 2.7 per cent, 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.