Apple iPhone Sales Going Ballistic

We're in a global economic recession, right? You wouldn't know it from looking at the latest iPhone sales statistics. Apple's stock jumped six dollars to $158 per share after the company announced its revenues for the third quarter.

Total revenue was $8.3 billion, leaving Apple with a net quarterly profit of $1.2 billion. According to Tim Cook, the Chief Operating Officer, "Apple can’t keep up with demand in the 18 countries where the 3GS model is now sold, a situation that won’t change in the short term."

It's no wonder. Apple sold 5.2 million iPhones in the third quarter, which is a 626 percent increase over the same quarter last year.

When it comes to computers, 2.6 million Macs sold in the quarter, a four percent increase over the same period last year. Some have attributed increasing Mac sales to the Apple "halo" effect, meaning that iPod and iPhone users decide to buy a Mac after using and liking the Apple portable devices.

Dropping the price of the iPhone 3G to $99 may have helped with sales, as did the introduction of the much-improved 3GS model.

According to a report by Deutsche Bank analyst Brian Modoff, Apple's share of total cell phone industry profit is a whopping 20 percent.

Pretty impressive considering Apple first introduced the iPhone only two years ago.