Apple assuaged concerns of slowing growth, reporting a 27 per cent hike in fourth quarter profits on record sales of computers and continued strong demand for its iconic iPod music player.

Profits for the three months to September 30 came in at $546 million (£292m), driven by record shipments of 1.6 million Macintosh computers.

Sales of the machines were up 30 per cent on the same period a year ago, benefiting from a strong back-to-school season and accounting for around 45 per cent of fourth-quarter revenues of $4.8 billion.

Apple added that it shipped 8.7 million iPods in the period, up 35 per cent from the same quarter a year ago. Sales of iPods, boosted by the introduction of new models, were also up on the previous quarter's 8.2 million.

The lift came after two successive quarter-on-quarter falls from the record 14 million sold in the three-month run-up to Christmas last year. The decline had raised questions over the product's longevity and Apple's prospects.

Today, analysts suggested that Apple's computer line could take more of the burden of growth from the iPod. Despite the strength of its brand, Apple remains a niche computer player, in seventh place in the world rankings with a 3 per cent market share.

Goldman Sachs analysts said in a note: "Mac growth is accelerating and could be hitting a key inflection point while the new iPods are already doing better than many thought heading into the seasonally strongest spending quarter."

Shares in Apple gained 4.5 per cent to $77.88 in extended trading following the earnings announcement in New York.

The decision to release full financial figures was seen as a sign of confidence after Apple was forced to delay results earlier this year following an inquiry into stock option grants.

However, Apple added that "these preliminary results may be subject to significant adjustment as a result of a likely restatement of historical results" linked to the options investigation.

A halt in diminishing sales of iPods will dispel some suspicions that the gadget has passed its peak and is now regarded as passé by younger users.

In a matter of weeks the gadget will face competition from a rival music player, the Zune, being launched by Microsoft. How the two fare in the run-up to Christmas will be seen as a litmus test of Apple's ambitions to maintain its grip on the market.

Apple has now sold more than 67.6 million iPods. Together with sales from Apple's online music store, iTunes, the iPod range, five years old this month, accounted for about 42 per cent of quarterly revenue.

The booming fourth-quarter sales figures drove Apple's revenues for the full year to a record $19.3 billion, up from $13.9 billion last year. The company's cash pile now stands at more than $10 billion, up about 25 per cent from a year ago.

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