Apple (Nasdaq: AAPL ) posted a blowout quarter on Tuesday, and it couldn't have come at a better time. The world's most valuable company had seen its shares fall in 10 of the previous 11 trading days. The shares surged nearly 9% higher on the day, making back more than half of the losses they had amassed during the two previous weeks.
The winner here was the iPhone. Apple's trend-setting smarpthone now accounts for 58% of the company's revenue.
It's a good thing the iPhone is doing so well, because iPod sales continue to shrink -- and even Apple's flagship Mac business saw its revenue inch just 2% higher from the prior year's quarter. The iPad is selling well, though the 11.8 million units sold during the quarter fell short of the 13 million that analysts were expecting.
It may not matter for now. The iPhone is hot, and business is booming overseas. Its success should be enough to carry Apple to higher ground. However, now there will be even more pressure on Apple to make sure that the iPhone 5 model that should be out later this year is another hit.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- Weakness in Europe forced Ford (NYSE: F ) into posting lower quarterly profits on Friday, but earlier in the week Fitch became the first credit-rating agency to boost Ford's debt to investment-grade after being mired as junk debt since 2005.
- Howard Stern filed an appeal in his lawsuit against Sirius XM Radio (Nasdaq: SIRI ) . The original allegations were thrown out a week earlier.
- Social-gaming leader Zynga (Nasdaq: ZNGA ) posted better-than-expected earnings, fueled by a 32% surge in revenue. It would be easy to play "B-E-A-T" in a game of its Words With Friends app to mark the event, though it wouldn't score a lot of points.
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