Apple sells 9.8 million iPods during Q3 [updated]

Reporting its third quarter financial results today, Apple said it sold 9.815 million iPods during the quarter—slightly below some analyst predictions, but a 21 percent increase compared to the same quarter last year. The company posted revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, compared with revenue of $4.37 billion and net quarterly profit of $472 million, or $.54 per diluted share in Q3 2006. Sales of Other Music Related Products + Services were up 33% over last year’s quarter and down 7.5% from the second quarter of 2007, to $608 million total.

That category includes iTunes Store sales, iPod services, and revenues from Apple and third-party iPod accessories.

“We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO. “iPhone is off to a great start — we hope to sell our one- millionth iPhone by the end of its first full quarter of sales — and our new product pipeline is very strong.”

“We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter,” said Peter Oppenheimer, Apple’s CFO.

“Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65.”

Updated: During Apple’s Financial Results Conference Call, Apple revealed that iPod controls a 71.5% share of the US MP3 player market based on numbers from NPD. iTunes saw 33% year-over-year growth, as iPods and music related income accounted for 40% of total revenue during the quarter. In addition, Apple TV and iPhone accounted for $180 million in revenue; Apple has previously stated it will use a subscription accounting model for both devices.