US giant Apple has posted record quarterly profits, helped by strong sales of its iPod music players.

Apple said net income in the fiscal fourth quarter ending September 24 was $430m, compared with $106m a year ago.

Revenues rose 56 per cent to $3.68bn, up from $2.35bn in the year-ago quarter. Analysts had expected revenue to reach $3.75bn.

For the year, Apple generated revenue of $13.93bn and a net profit of $1.335bn, reflecting annual growth of 68 per cent and 384 per cent, respectively, and representing the highest annual revenue and net profit in the company's history.

"We're thrilled to have concluded the best year in Apple's history, with 68 per cent year-over-year revenue growth and 384 per cent net profit growth," said chief executive Steve Jobs.

"This is the direct result of our focus on innovation and the immense talent and creativity at Apple. We could not be more excited about the new products we’re working on for 2006."

During the fourth quarter Apple sold 6.5 million iPods, a year-on-year rise of 200 per cent.

Sales of Macintosh computers were up 48 per cent in the fourth quarter, compared with the same period a year earlier.

"We're very pleased to report 48 per cent year-over-year growth in Mac shipments in Q4, as well as our 10th consecutive quarter of record iPod sales," said chief financial officer Peter Oppenheimer.

Looking ahead, Apple said it is targeting revenue of about $4.7bn for the first quarter of fiscal 2006.

But despite the company's good news, shares in the firm fell 11 per cent to $45.77 in morning trading on the New York Stock Exchange.