Sales of iPods, Macintosh computers and the iPhone have lifted Apple profits 67 per cent to $904 million (£445 million), beating all Wall Street expectations for the technology giant.

Steve Jobs, Apple’s chief executive, unveiled the group’s record sales for the fourth quarter of the year at the company’s headquarters in Cupertino in the heart of California’s Silicon Valley. It was the first full three-month period during which the iPhone has been on sale in the United States.

The iPhone was widely perceived as one of the most-hyped products in the world, but although it has grabbed all the headlines the rise in sales has been driven by demand for iPods and Macintosh computers. It is, however, expected to come into its own in future.

Peter Oppenheimer, Apple’s financial officer, said that the group had sold 1.19 million iPhones during the quarter and was looking forward to the launch of the iPhone in Europe next month. The group reported sales for the three months to September 29 of $6.22 billion, 29 per cent higher than for the same period the year before and above Wall Street forecasts of $6.06 billion.

The iPhone had a controversial beginning when it was launched in the United States on June 29, when it cut the cut the price of one of the models by $200 to $399 just days after launch. However, Apple managed to sell its millionth handset three weeks ahead of estimates on September 10.

Yesterday, Apple said that sales of iPods had surged 17 per cent during the fourth quarter compared with the same period the year before, representing 10.2 million iPods. Overall sales of personal computers made up more than a third of group sales.

Apple’s fortunes have changed dramatically in recent years as the iPod became a marketing phenomenon. The portable players, which work on Macs as well as Microsoft Windows-based machines, have also drawn more people to Apple’s software and design, leading to what analysts call a “halo effect” on Mac computer sales.

Apple, which is to open its first store in China next summer, sold a record 2.16 million Macintosh computers over the period, 34 per cent than for the same period the year before. Of those, sales of laptops rose 37 per cent. For years, Mac struggled with a 2-3 per cent share of the personal computer market in the US but that slice has now grown to around 8 per cent.

Shares in the group jumped 7.5 per cent to $187.44 in after-hours trading on Wall Street, having already more than doubled this year. Mr Oppenheimer said: “Looking ahead to the first quarter of fiscal 2008, we expect revenue of about $9.2 billion.”

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