Apple has reported record earnings in its latest fiscal quarter, logging $818m profit on revenues of $5.41bn in between April and June 2007. 

Although the release of the iPhone did not meet the lofty expectations of some analysts, the new device helped catapult revenues with sales of 270,000 units in the first two days.

Early analyst estimates suggested that 200,000 iPhones would be sold in the first two days, although some firms estimated that as many as 525,000 had been sold.

The two-day figure is important because the iPhone was introduced on 29 June just one day before the close of the fiscal quarter.

AT&T estimated on 24 July that just 150,000 phones had been activated over the first two days, leading some to conclude that the iPhone was selling far worse than expected and sending Apple's stock down four per cent. 

Yesterday's report sent Apple's stock back up more than six per cent in after-hours trading, according to Reuters.

Apple chief executive Steve Jobs estimated that the iPhone will cross the one million sales mark by the end of September.

However, it was not just iPhone sales that pushed Apple to its highest third-quarter revenue and profit numbers ever.

The Macintosh logged its best quarter ever, selling more than 1.7 million desktop and laptop computers.

The iPod also did well, quelling any fears that the iPhone would cannibalise its sales. Apple sold more than 9.8 million iPods, representing a 21 per cent increase over the same quarter last year.