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Apple shares plunge 11%

FROM VARIETY: Net income rose 58% to $1.58 billion

By Ben Fritz of Variety -- Video Business, 1/23/2008

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JAN. 23 | FROM VARIETY: Record revenue and profits and a very healthy first holiday for the iPhone weren't enough to soothe Apple investors, as lower-than-expected guidance sent the computer and media device maker's shares plunging 11% in after-hours trading Tuesday.

Revenue rose 35% during the holiday quarter, the first on Apple's fiscal calendar, to $9.6 billion. Net income rose 58% to $1.58 billion.

Revenue growth was highest for the computer division, but iPod devices and services provided the majority of Apple's coin -- more than $5 billion during the quarter. IPod unit sales were up 5% to 22.1 million, but revenue rose 17% to almost $4 billion, indicating that consumers were buying more expensive models like the new iPod Touch.

Read the full story on Variety.com.



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