Apple reports record 1Q profit

SAN JOSE, Calif. - Apple Inc. on Wednesday posted a record profit in its fiscal first quarter, beating Wall Street estimates as earnings rose 78 percent amid strong holiday sales of its iPod music players and Macintosh computers.

During the final three months of 2006, the Cupertino-based company Apple said it earned $1 billion, or $1.14 per share, compared to $565 million, or 65 cents a share, in the year-ago period.

Analysts, on average, were expecting earnings of 78 cents per share on sales of $6.42 billion, according to a Thomson Financial survey. Shares of Apple lost $2.15 to close at $94.95 on the Nasdaq Stock Market as technology stocks in general tumbled. In extended trading following its report, Apple shares climbed 1.7 percent to $96.61.