Apple confounds the Wall Street pundits

Despite dire prognostications from financial mavens who warned that Apple’s glory days are gone, the company turned in a staggering 94 percent profit rise for its quarter, amounting to revenues of $36.8 billion and profits of $11.6 billion for its second quarter.

The results caused its share price to soar by over $40 to rest at $600.83 in after shares trading. Apple’s gross margin for the quarter was 47.4 percent, up from 41.4 percent in the same quarter last year.

The results were fuelled by Apple managing to shift 35 million iPhones in the quarter, sales of the smartphone accounting for close to 60 percent of Apple’s total sales. China was a key area for growth. The company also reported that sales of its new iPad were also strong in the quarter.

Tim Cook, Steve Jobs’ successor, said that it sold 12 million iPads in the quarter. He promised that this year will bring additional new products – a new version of the iPhone is expected this September.

Apple sold four million Macs during the quarter, up seven percent compared to the same quarter last year.

The next quarter is likely to generate $34 billion, according to the company’s chief financial officer, Peter Oppenheimer.