Apple Computer increased its third-quarter revenue 8% while net income fell, compared with the same period last year.
Revenue rose to $1.55bn in the quarter ending 28 June, compared with revenue of $1.43bn for the same period last year. But net income fell to $19m from $32m.
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The company shipped 771,000 Macintosh PCs and other hardware in the third quarter, compared with 711,000 units in the second quarter. Shipments were lower year over year, down from 808,000 in the third quarter of 2002.
Poor iMac sales were the primary reason for the overall shipment decline, with shipments falling from 378,000 in the third quarter of last financial year to 287,000 units in this financial year's third quarter. However, shipments of Apple's PowerBook notebooks were up 71%, and revenue from peripherals such as the iPod was up 93%.
Of all Macintosh units sold in the quarter, 46% were mobile PCs, a record for Apple, said chief financial officer Fred Anderson.
Apple sold five million songs through its iTunes music store in the quarter, and has sold a total of 6.5 million to date.
The company sold 304,000 iPod music players in its third quarter, Anderson said. Apple introduced the latest version of its iPod in that quarter.
Tom Krazit writes for IDG News Service