The Sweet Taste of Apple

Many companies have been hit hard by this recession and have seen profits evaporate and sales droop. So far Apple has been a notable exception. The maker of Macintosh computers posted a 15% rise in net earnings in the quarter just ended to $1.33 per share on strong sales of its iPhones.

These fun little devices that allow users to take pictures, listen to music, search the Internet, and make phone calls show how a creative manufacturer of discretionary items - goods that consumers want but don't need at any given moment - can survive and even thrive a steep downturn. Better-than-expected iPod sales also aided results.