Apple, Inc. demonstrated its superior products when it released its recent quarterly earnings report. In light of the economic slowdown and the decline in consumer spending, one would have expected a decrease in revenue and profits for Apple. But the innovative firm just keeps on surprising.

Apple’s fourth quarter earnings report outpaced Wall Street expectations. In this past quarter, Apple sold 6.9 million iPhone 3G unites, the highest yet in a quarter, and has already passed its own goal of selling 10 million by the end of 2008. More astonishing, iPhones for the first out places sales of rival R.I.M. phones, which sold 6.1 million (R.I.M. is a major seller to corporations).

Apple also increased Mac sales from 2.2 million in the 2007 fourth quarter to 2.6 million this past quarter. It also recorded a record for its world famous iPods. 11 million iPods were sold this past quarter, an 8% increase from 2007’s fourth quarter.

Such strong sales pushed Apple’s net income up 26% to $.1.4 billion and revenue up to $7.9 billion, a 27% increase. Last year, Apple recorded a $904 million net income and then a record for Apple of $6.22 billion. Its profit margins also increased from 33.6% to 34.7%. Apple will end the 2008 fiscal year with $25 billion in cash and no debt.

Mr. Jobs still has magic in him.