Apple's meteoric 47 percent increase in profit gives hope to economy

In the third financial quarter of the year, Apple has surprised analysts and given Wall Street a major boost by showing an increment of 47 percent in their profits. Their earnings reached $1.67 billions.

The credit is being distributed between Apple's iPhone, which remains a favorite amongt many, and the sales of their macbooks post the openings of schools.

Apple saves the day
The Wall Street analysts had predicted an upward surge, but an increase of this astronomical proportion caught everybody off guard. The shares showed an increase of 5.4 percent on the news of Apple's triumph.

Broadpoint AmTech analyst Brian Marshall said that, “Apple's financial report, released after the markets closed Monday, reinforces my view that Apple is hands down the best technology company on the planet."

Apple's shares have already doubled up this fiscal year, and showed an eight percent growth. For a little while, their value surpassed the all-time high of $202.96, reported in December 2006.

Apple used strategies like cutting down the price of the old iPhone by $99, after unveiling a newer and faster version of the phone. This led to a 7.4 million units increase in sales from July through September.

According to Gene Munster, a securities analyst at Piper Jaffray, “It’s a pretty impressive quarter given that consumers are still trying to figure out whether they want to spend again.”

Apple impervious to economic meltdown
While the economy got shattered due to the recession, Apple was barely bruised. They sold more than 3 million copies of the Mac laptop and desktop in this quarter. And all this when the market gurus were saying that luxury and lifestyle products will be hit the worst.

Apple's chief executive Steve Jobs said that they have sold most number of Mac books and iPhones in this quarter than ever.

But Apple's journey has not been all pleasant. On one hand, despite added features like video recording that was introduced in their iPod nano, the product saw a decline of eight percent. But the good news came when the iPod Touch, which is very similar to the iPhone where the features are concerned, saw an increment in sales by 100 percent.

Apple was not the only one proving the pessimistic analysts wrong. Google Inc. joined in and declared a profit of 27 percent this Friday.

Apple is secretively working on their tablet, and speculations are rife that once that is launched, there would be no stopping them.