Apple has reported revenues of $9.87bn and net profits of $1.67bn for its fiscal fourth quarter - its most profitable ever. The company sold 7.4m iPhones during the quarter, up 7 per cent year-on-year despite component shortages for the iPhone 3GS in July and August.

"For almost the entire quarter, until we got into September, the iPhone 3GS was short virtually everywhere," said COO Tim Cook in Apple's analyst conference call last night.

Apple's revenue from iPhone handset and accessory sales, as well as carrier payments, was $2.3 billion during the quarter - up 185% year-on-year.

Apple also sold 10.2 million iPods during the quarter, down slightly year-on-year. However, the company said sales of its iPod touch doubled during that period.

Half a billion apps were downloaded from the App Store during the quarter.

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