Once again, Apple has convincingly demonstrated that good things come in small packages. Thanks largely to a terrific sales quarter for the iPhone, Apple bucked the grim economy by posting a remarkable 26 percent increase in profits for the fourth quarter.

In a telephone conference announcing the news, Apple Chief Financial Officer Peter Oppenheimer said the company’s entire product line is strong.

“We sold more Macs than we have in any other quarter in Apple’s history,” Oppenheimer said. “We sold more iPhones in the September quarter than in all previous quarters combined. And we sold more iPods than in any prior non-holiday quarter.”

Altogether, Oppenheimer said, Apple generated more revenue and higher earnings than in any comparable quarter in Apple’s history.

The news of Apple’s tremendous quarter was greeted warmly by Wall Street. In midafternoon trading, Apple’s stock was up more than $4 per share even while the Dow Jones Industrial Average was down nearly 400 points.

Thirteen Million and Counting

As positive as the sales were across Apple’s product line, the driver of the revenue figures was clearly the iPhone, which is rapidly gaining a level of cultural status achieved by few products in American commerce.

In a separate three-month period, Apple sold 6.9 million iPhones, easily cresting the 10 million-unit mark that CEO Steve Jobs predicted when he first introduced the device last year. In fact, total sales are closer to 13 million, making Apple the third-largest phone manufacturer in the world. Even more remarkable is the fact that the iPhone snuck past the BlackBerry in total sales for the month.

“Apple just reported one of the best quarters in its history, with a spectacular performance by the iPhone — we sold more phones than RIM,” said Jobs. “We don’t yet know how that economic downturn will affect Apple. But we’re armed with the strongest product…

[Source] dhiram