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Wednesday, 19 January 2011

Apple Profits Up As Jobs Takes Medical Leave

11:20pm UK, Tuesday January 18, 2011

Adam Arnold and Lorna Blount, Sky News Online

Apple says its latest profits were $6bn - a 78% rise on a year ago - which may help ease investor concern after boss Steve Jobs decided to take medical leave.

Apple CEO Steve Jobs

It is not known how long Mr Jobs will be away for

The tech giant's figures were better than expected and were helped by impressive sales of the iPhone and iPad over the Christmas period.

Apple says it sold over seven million iPads, about a million more than predicted, and also shifted more than 16 million iPhones in the first quarter which ended on December 25 2010.

The $6bn (£3.76bn) profit figure, or $6.43 per share, compared with $3.4bn (£2.13bn), or $3.67 per share, for the same period a year earlier.

Analysts had forecasted $5.41 per share for the latest quarter.

The figures were announced after regular trading ended, which saw the company's share price close down 2.3% at $340.65 on the Nasdaq.

But the shares then rose 1.9% to $347.57 in extended trading after the release of the results.

The company is firing on all cylinders. The iPad continues to be a game changer.

Colin Gillis, analyst at BGC Partners

Chief executive Mr Jobs' decision to temporarily leave the firm comes two years after he took a six-month break during which he underwent a liver transplant.

In his latest statement, the 55-year-old did not say how long he expected to be away or provide any details about his latest health issues.

Chief operating officer Tim Cook will look after the firm's day-to-day operations in his absence.

Colin Gillis, analyst at BGC Partners, said the latest Apple profits were "crazy good".

He added: "The company is firing on all cylinders. The 7.3 million iPads, that is a great number, that is about one million more than people are looking for."

"The iPad continues to be a game changer."

Tim Cook, Apple's chief operating officer

Tim Cook will be responsible for Apple's day-to-day operations

On Mr Jobs' health, Mr Gillis said: "Steve is an important part of what Apple is, everyone wants to know does the company fall apart? No.

"More data is always better than less (on health issues). But nonetheless they disclosed what they are going to disclose consistent with patterns."

In an email to Apple employees, Mr Jobs said: "At my request, the board of directors has granted me a medical leave of absence so I can focus on my health."

"I will continue as CEO and be involved in major strategic decisions for the company," the e-mail read.

I love Apple so much and hope to be back as soon as I can. In the meantime, my family and I would deeply appreciate respect for our privacy

Apple CEO Steve Jobs

Mr Jobs added: "I have great confidence that Tim and the rest of the executive management team will do a terrific job executing the exciting plans we have in place for 2011.

"I love Apple so much and hope to be back as soon as I can. In the meantime, my family and I would deeply appreciate respect for our privacy."

The company's fortunes have been uniquely linked to its CEO, who returned to the company in 1997 after a 12-year absence to turn around the flagging tech giant with innovative and wildly successful products like the iPod and iPhone.

Mr Jobs underwent an operation in 2004 for pancreatic cancer, which was kept under wraps until years later.

Questions about his health have resurfaced periodically since the cancer diagnosis, and have been the subject of much debate among corporate governance experts over the obligations the company has to its shareholders.

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