Apple reported profit in its fiscal fourth quarter ended September 27 of $1.14 billion, or $1.26 a share, up from $904 million, or $1.01 a share, in the year-ago period. Revenue rose 27 per cent to $7.9 billion.

The profit bested analysts' average expectations for the company to post a profit of $1.11 a share but the reported revenue was below their average forecast of $8.04 billion, according to Reuters Estimates.

The company said its fourth-quarter figures would have been better if it fully accounted for iPhone revenue. Including deferred revenue from the iPhone, sales in the quarter would have reached $11.68 billion and $2.44 billion in net income.

In the past, Apple had not provided adjusted figures, which include all the revenue it defers from the iPhone and Apple TV. If it had not deferred iPhone revenue, the phone would have represented 39 per cent of Apple's sales in the September quarter, according to the company.

CONSERVATIVE ESTIMATES

For the holiday quarter ending in December, Apple forecast profit between $1.06 and $1.35 a share on revenue of $9 billion to $10 billion. Analysts, on average, were expecting earnings of $1.69 per share on revenue of $10.7 billion in the period, according to Reuters Estimates.

Gabelli & Co analyst Robert Haley said the company forecast is "traditionally conservative, and with the economy being a big wild card they're being more conservative."

In the September quarter, Mac shipments increased 21 per cent from last year to 2.61 million, while iPod shipments rose 8 per cent to 11.05 million.

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