l downturn turned into a period of profit thanks to price cuts in memory chips and display screens.
According to a Bloomberg survey of analysts the only reason that Apple did well in its traditionally slow quarter was because the price of its components dropped.
The company predicted a slowdown in shipments from the holiday quarter, when it sold a record 21.1 million iPod music players and Mac sales sent profit soaring.
However in the same month it saw a surprise cut in the cost of flash-memory chips, which store songs on iPods, plunged as much as 45 percent. Display prices also fell.