Apple iPhone boosts profit

APPLE&rsquo;S profits jumped by 15 per cent in its third quarter, the firm said yesterday, thanks to sales of its iPhone, which topped five million in the period. <br /><br />The firm, which recently welcomed chief executive Steve Jobs back to work following liver transplant surgery, said profits rose to $1.23bn (&pound;747m), or $1.35 a share, in its third quarter, compared to $1.07bn, or $1.19 a share a year ago. Revenues increased 12 per cent to $8.33bn.<br /><br />Sales of its blockbuster smartphone, the iPhone, increased more than sevenfold to 5.2m while the company sold four per cent more Mac computers. But sales of its iPod MP3 player were down seven per cent in the period. <br /><br />Meanwhile, Yahoo reported an eight per cent increase in its second quarter profit, up to $141m from $131m during the same period last year.<br /><br />The internet firm beat Wall Street expectations but analysts pointed out that lower revenues had been offset by some $150m in cost-cutting measures implemented by new chief executive Carol Bartz. <br /><br />Yahoo&rsquo;s second quarter revenue was down 13 per cent to $1.6bn after it continued to struggle to sell search advertising.