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Apple Preps for Millionth iPhone

Apple Inc. (Nasdaq: AAPL) today shrugged off market jitters about sales of the iPhone, saying that it expects to sell 1 million of the smartphones by the end of September. But its share price is still feeling the burn of missed expectations.

“iPhone is off to a great start — we hope to sell our one-millionth iPhone by the end of its first full quarter of sales," Apple CEO Steve Jobs said in a statement today, as the company unveiled record profits for its fiscal third quarter of 2007, which ended June 30. The iPhone went on sale on June 29.

Apple's shares took a dive Tuesday after AT&T Inc. (NYSE: T) revealed iPhone sales figures that didn't reach the dizzying heights some analysts had been predicting. Apple's numbers were still down about 0.5 percent at $136.77 in fluid early after-hours trading but rallied by nearly $13 per share later in the evening to climb to over $150 a share. (See iPhone Sales Disappoint Apple Watchers.)

Apple says it shipped 270,000 iPhones in the last 36 hours of the quarter and expects to move 10 million of the devices in 2008. Some analysts, however, had expected the iPhone to shift 500,000 units or more in its U.S. debut.

All of which served to somewhat obscure the fact that the Cupertino, Calif., company handily beat analysts' expectations for the quarter. Apple posted profits of $818 million, or $0.92 a share, for the quarter, compared to profits of $472 million a year ago. Revenue was up nearly 24 percent from the previous year, at $5.41 billion.

In any case, the iPod MP3 player continues to be the company's real cash cow. Apple shipped 9.8 million iPods during the quarter.

— Dan Jones, Site Editor, Unstrung

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