Apple's dominance in the mobile market continued to surge in the first three months of the year, with record iPhone and iPad sales, particularly in China. During an earnings call with analysts on Tuesday, April 24, Apple reported a profit of $11.6 billion on revenue of $39.2 billion in the quarter ended March 31.

Sales of iPhones surged 88 percent, while iPad sales more than doubled from the same quarter last year. "We're thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter," said Apple CEO Tim Cook. "The new iPad is off to a great start, and across the year you're going to see a lot more of the kind of innovation that only Apple can deliver."

Apple's net income of its second fiscal quarter has nearly doubled from the same quarter the previous year, when sales amounted to $24.7 billion. Considering that Apple released its third-generation iPad in March, its surging sales are just the beginning. "Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68," said Apple CFO Peter Oppenheimer.

'Mind-Boggling' Demand in China

Apple products are very popular worldwide, but the demand in China was "mind-boggling," said Cook, noting that revenue for the quarter hit a record high of $7.9 billion in China. In the first half of Apple's fiscal year, i.e. the six months until March 31, the Cupertino, California-based company took in $12.4 billion in China. Last year, Apple took in $13.3 billion for the entire fiscal year in the country.

"China has an enormous number of people moving into higher income groups, middle-class if you will, and this is creating a demand for goods," explained Cook. "There is tremendous opportunity for companies that understand China, and we are doing everything we can to understand it."

While dealing with an impressive backlog of product orders and launching the iPhone 4 in China, Apple is also struggling to keep up with the great demand for iPads worldwide. "The new iPad is on fire," said Oppenheimer. "We are selling them as fast as we can make them."

Apple reported record Mac sales as well, but it said it sold two iPads for every Mac sold in the education market. According to Apple, the iPad tablet computers are very popular with companies, schools, governments and gadget lovers. About three quarters of the top corporations in the world are using or at least testing iPads, said Cook.

The release of the earnings figures reversed Apple's losing trend in stock price, driving its shares more than seven percent higher to $600.30 a share on Nasdaq. Before the earnings release, Apple's stock had dipped around 12 percent on growth concerns. Post earnings announcement, Apple's shares closed above $600.

(reported by Alexandra Burlacu, edited by Dave Clark)