In a classic pattern, Apple's share values fell fast following confirmation that the company had reached a new corporate record in its just-gone financial quarter.
The company revealed revenue of $5.75 billion and a net quarterly profit of $565 million. It's shares now stand at $82.4901.
Apple shipped 1.254 million Macs (667,000 desktops and 587,000 laptops) and 14.043 million iPods in the quarter.
Apple predicted second-quarter earnings of 38 cents a share on revenue of evenue of "about $4.3 billion". Some investors may have missed the fact that accomplishing that conservative target would still be the second-best performing quarter in Apple's history.
Investor jitters a chance to buy
Investors cited concerns that Apple would be able to continue to deliver, of lower-than-expected Mac sales, and that its second-quarter projections appear conservative, following its succession of blow-out quarters.
The company also saw sales climb 8 per cent in North America, 21 per cent in Europe, 27 per cent in Japan and 62 per cent at its retail stores.
Innovation continues at the company. Research and development spending climbed $59 million, year on year, to $182 million.
American Technology Research analyst Shaw Wu predicted this week that investor jitters would dampen enthusiasm for Apple stock immediately following the earnings announcement, but told his clients to use this as a buying opportunity.
Intel impact admitted
Apple has experienced "a bit of a pause" in Mac sales which it thinks may have been associated with its move to Intel processors. It said that some buyers had delayed their Mac acquisitions while they waited for the new Intel models, but only in the few weeks before Macworld Expo, and the company was pleased the delay wasn't more pronounced.
Chief financial officer Peter Oppenheimer told analysts: "Mac unit sales exceeded our internal expectations despite what we believe was a pause in sales associated with the Intel transition."
Apple revealed it may be unable to meet demand for its new MacBook Pro, adding that iMac G5s and PowerBook G4s would only remain available "while stocks last".
Apple's retail outlets attracted over $1 billion in the quarter, revealing plans to open 40 new stores in 2006, mainly in the US, but also in Canada, Japan, the UK and Rome, Italy.
iTunes sales broke even, the company admitted.
The company now holds $4,150 million of cash and cash reserves.