CUPERTINO, California: Apple Computer's total sales for the last quarter were up by over $2 billion (€1.26bn; £1.01bn) on the same period in 2007, with strong demand for its Macintosh computers offsetting a slowing market for its iPod music player.

Sales of its Mac brand improved by 54% year on year – three times the rate of the wider PC market – helping total sales reach $7.51bn despite an increase in iPod shipments of just 1%.

Ceo Steve Jobs said: "With over $17bn in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."

Apple's gross margin, however, fell by 2.2% to 32.9%, with the company predicting that the next three months were likely to produce either similar or slightly lower sales levels.

Data sourced from Financial Times online; additional content by WARC staff