Net income rose to $1 billion, or $1.14 a share, from $565 million, or 65 cents, a year earlier, Cupertino, California-based Apple said today in a statement. Sales rose 24 percent to $7.12 billion. Analysts anticipated profit of 78 cents, according to the average of 14 estimates compiled by Bloomberg.

Apple sold a record 21.1 million iPods after Chief Executive Officer Steve Jobs stoked holiday demand by releasing smaller, less-expensive and higher-capacity models. Updated Macs with faster chips from Intel Corp. helped drive shipments to 1.61 million machines. Sales gained in the U.S. and abroad.

``The results today confirm that Apple's product portfolio is a superior offering to the market place,'' said Glen Kacher, a fund manager at Integral Capital Partners in Menlo Park, California, which owns Apple shares. This year ``should be a victory lap for Apple.''

Profit and sales this quarter will fall short of analysts' estimates. Apple forecast earnings of 54 cents to 56 cents a share, compared with the 60-cent average analyst estimate. The company expects sales of $4.8 billion to $4.9 billion, below analysts' average estimate of $5.23 billion.