Holiday sales lift Apple earnings, stock price

— -- The iconic tech company announced record revenue of $10.2 billion for its fiscal first quarter, which ended Dec. 27, as well as record earnings of $1.6 billion.

"People are cutting back, but not on Apple products," said Gene Munster, an analyst at Piper Jaffray.

Apple said it sold a record 22.7 million iPods — a surprise, as tech analysts thought iPods were on the wane.

Indeed, Apple interim CEO Tim Cook said iPod sales have slowed in the U.S.; most of the growth was international.

Cook, who is also Apple's chief operating officer, is filling in for Steve Jobs, who is on medical leave until June.

A survivor of pancreatic cancer, Jobs, 53, recently disclosed he has a hormone imbalance that resulted in significant weight loss.

In a conference call with Wall Street analysts, Cook declined to give any update on Jobs' health, or to address whether he is next in line for the CEO spot should Jobs not return.

"There's an extraordinary breadth and depth among Apple's executive team," Cook said. "We believe we're on the face of this planet to make great products and are focused on innovation. Regardless of who is in the job, those values are so embedded in this company that Apple will continue to do really well."

On Wednesday, Bloomberg News reported that the Securities and Exchange Commission is investigating Apple's disclosures on the topic, citing an anonymous source. USA TODAY could not confirm the report. Both Apple and the SEC had no comment.

Apple said it sold 2.5 million Macintosh computers, up 9% over the year-ago quarter.

However, all the growth came from laptops, whose sales rose 34% in the quarter, while desktops declined 25%.

Sales of the iPhone, Apple's flashiest new product, were "flat" at 4.4 million units, Munster said. That makes a total of 17 million iPhones since the 2007 launch.

Cook said iPhone sales might take a hit because of the recession. Monthly service contracts of $75 or more might cause some consumers to wait, he said.