iPADS ARE THE NEW IT IN TECH TOYS!

Stellar sales of Apple's iconic pair, the iPhone and iPad, helped the tech company post stunningly strong quarterly results, pushing its shares to a record high.

Apple sold more than 20 million units of the iPhone in the fiscal third quarter as international customers, especially in China, snapped up the popular gadget.

The results shot past Wall Street's expectations for sales of between 17 million to 18 million and likely put Apple at the top of the heap among the world's smartphone makers.

Apple's shares rose almost 3% to an all-time high of $386.90.

The company scored big with its iPhone during the past quarter, even without the help of a new version - which is due out this fall and could give Apple another boost - to plump up demand.

Wednesday, Apple rolled out a new $999 MacBook Air, as well as a $599 Mac mini. It also debuted a new operating system for its computers, OS X Lion, which it says adds hundreds of features and sells for $29.99.

It's also poised to introduce its iCloud service later this year, which lets it store music, photos and other files and access them via the Internet.

Tech website CNET noted that its white MacBook had quietly disappeared from Apple's website.

Apple had struggled to keep its iPad2 in stock after its March debut, but turned things around to sell 9.3 million of them during the third quarter.

Overall, revenues during the quarter surged 82% to a forecast-topping $28.6 billion, and net income more than doubled to $7.79 a share.

Analysts had forecast revenues of $24.99 billion and earnings per share of $5.85, according to Thomson Reuters I/B/E/S.

After the announcement, Wall Street analysts scrambled to hike their annual earnings forecasts and share-price targets.

There's some fear, though, that both the iPhone and iPad could be too successful for Apple's own good.

Tablets like the iPad could be poised to overtake computers, even Apple's own. Apple said 86% of Fortune 500 companies are testing or using the iPad, and the iPad topped Mac computer sales at primary and secondary schools.

The iPhone and iPad, which can play music, could also be biting into sales of the iPod, which fell slightly short of projections, with sales of 7.5 million.

Investors are also watching carefully for how the company will handle the succession of its chief executive. Steve Jobs, who has struggled with cancer, has been on leave since January.

Apple board members have discussed the matter with executive recruiters, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.


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