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Apple Profit More Than Doubles: Page 3 of 5

The company said it sold more than 2 million iPods during the fourth quarter -- a record -- bringing the product's lifetime total to 5.7 million. The music player accounted for 23 percent of the company's quarterly revenue, compared to 7 percent a year ago.

Apple's groundbreaking licensing deal with Hewlett-Packard also appeared to be paying off. HP's version of the iPod player, which started selling in September, accounted for about 6 percent of the quarter's iPod sales, Oppenheimer told analysts during a conference call.

Apple officials believe the popularity of the company's music products, which also includes the online iTunes Music Store, is also creating a "halo effect," translating to more sales for the computer business, Oppenheimer said.

Nearly 50 percent of computer customers at Apple's retail stores are either buying a Macintosh or a computer for the first time, Oppenheimer said.

For the quarter, Apple said it sold 836,000 Macintosh computers, accounting for 52 percent of the company's total revenue.