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Apple reported record breaking profits for the three months to 31 December 2011 of £8.36 billion ($13.06 billion)- more than doubling  up 118% from the same period in 2010.The company also sold 37 million iPhones- more than twice as many as they sold in the last quarter of 2010.

“Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline,” said chief executive Tim Cook.

The firm is expected to release its iPad 3 in March this year.

“We are very happy to have generated over $17.5bn in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO.

“Looking ahead to the second fiscal quarter of 2012, we expect revenue of about £20.96 billion and we expect diluted earnings per share of about £5.48 ($8.50).”

Apple saw strong sales for both its iPads and its Mac range of computers, rising 111% and 26% respectively compared to the same period in 2010.

Jonathan Ive, Apple’s head of design, has been awarded a knighthood in the New Year Honours list.Mr Ive, who can now call himself Sir Jonathan has been made a Knight Commander of the British Empire (KBE).

Raised in Chingford, Mr Ive began working for Apple in 1992 and since then has been the brains behind many of its products.

He described the honour as “absolutely thrilling” and said he was “both humbled and sincerely grateful”.

Mr Ive added: “I am keenly aware that I benefit from a wonderful tradition in the UK of designing and making. I discovered at an early age that all I’ve ever wanted to do is design.”

Mr Ive has been lauded for the tight fit between form and function seen in Apple gadgets such as the iPod and iPhone.

Born in February 1967, Mr Ive inherited a love of making things from his father, a silversmith, and reportedly spent much of his youth taking things apart to see how they worked.

From the age of 14, he said, he knew he was interested in drawing and making “stuff” and this led him to Northumbria Polytechnic – now Northumbria University – where he studied industrial design.

On graduation he started work as a commercial designer and then, with three friends, founded a design agency called Tangerine.

One of the clients for the agency was Apple which was so impressed with the work he did on a prototype notebook that it offered him a full time job.

Mr Ive was apparently frustrated during his early years at Apple as the company was then suffering a decline. Everything changed, however, in 1995 when Steve Jobs returned to the company he helped found.

Mr Jobs described Mr Ive as his “spiritual partner” in the recent biography of the Apple co-founder written by Walter Isaacson. However, it also said that Mr Ive was “hurt” by Mr Jobs taking credit for innovations that came from the design team.

Mr Ive’s eye for design combined effectively with Mr Jobs’ legendary attention to detail and the products that have emerged from the company since the late 1990s have turned Apple into the biggest and most influential technology company on the planet.

The knighthood is the second time Mr Ive has been recognised in the honour’s list. In 2005 he was made a Commander of the British Empire (CBE).

The source code behind the mobile operating system WebOS, is being given to open source software developers by Hewlett Packard.The company acquired the software when it bought the smartphone maker Palm for £767 million ($1.2 billion) last year.

HP used the code to power its short-lived range Touchpad tablet computers before it abandoned the product line.

The firm said it would continue investing in the project to help third parties add enhancements.

“By contributing this innovation, HP unleashes the creativity of the open source community to advance a new generation of applications and devices,” said the firm’s president and chief executive, Meg Whitman.

A statement from the company said it would make the underlying code behind WebOS available under an open source licence. It said third-party developers, partners and HP’s own engineers could then “deliver ongoing enhancements and new versions into the marketplace”.

The firm added that it intended to be “an active participant and investor in the project”.

Analysts said the decision secured the platform’s future, at least in the short to medium term.

Apple and five publishers are to be investigated over claimed anti-competitive practice in the ebook market, says the European Union’s anti-trust watchdog.As well as Apple, the inquiry will also examine Hachette Livre, Penguin, Harper Collins, Simon & Schuster and Verlagsgruppe Georg von Holzbrinck.

The Commission said it would focus on alleged illegal agreements restricting competition in the EU.

The UK’s Office of Fair Trading has already carried out a similar inquiry.

The character and terms of agreements that the companies made with agencies are to be examined for breaches of EU rules on cartels, the Commission said.

The Office of Fair Trading has now finished its own investigation, but continues to work closely with the Commission, which is extending the scope of the inquiry across the whole of Europe.

The Commission carried out “unannounced inspections” on the companies in March 2011 as part of its investigations at premises in several European countries.

Apple’s iBook store, which supplies ebooks to the company’s iPad tablet computer and the iPhone, is likely to come under scrutiny.

As it’s now December and people are opening the first windows on their Advent calendars Dr Search thought we would give you some insights for the Twelve Days of Christmas 2011 online. The 12 Insights of Christmas 2011

1. This December 350 million hours will be spent shopping online by the UK Internet population. This translates to an average of 8 hours and 45 minutes spent per person on shopping websites over the course of the month.

2. 2.1 billion visits will go to online retail sites in December with new record peaks in traffic both pre and post-Christmas.

3. Lego will be the most searched for toy this Christmas, in particular Lego Star Wars games and sets.

4. Cyber Monday (5 December) will be the biggest pre-Christmas shopping day online with 85 million visits to retail websites from UK Internet users.

5. Monday 19 December will be the biggest day of December for online Grocery visits as people do some last minute food shopping but also check store opening times across the Christmas period.

6. iPhones will be a third more popular online than iPads this Christmas. If search intent was reflected in sales, for every 3 iPads Apple sold this Christmas they would sell 4 iPhones.

7. Facebook will see a new peak in UK Internet visits as friends share messages of good will with one another. 25 million hours will be spent on Facebook on Christmas Day alone.

8. Searches for the post-Christmas sales will start earlier than ever this year, with eager shoppers starting to do their research online as early as Christmas Eve.

9. Friday 23 December will be the biggest day of December for retailers receiving traffic from email as the multi-channel retailers prepare their customers for the post-Christmas sales.

10. The fashion sector will be the most reliant on Facebook traffic this Christmas, with TopShop, River Island and ASOS among the biggest recipients of Facebook traffic.

11. 12 million hours will be spent watching video clips on BBC iPlayer this Christmas with the biggest driver of traffic being the Dr Who Christmas special.

12. Hull will be the online shopping capital of Britain of December 2011, with proportionally more people doing their Christmas shopping online than any other city in the UK.

These twelve days of christmas online insights were initially research by Hitwise.

Profits at Amazon have dropped 73% after the company invested heavily in it’s Kindle tablet computer.The company, the world’s largest online internet retailer, said third quarter net income was £40 million ($63 million).

During the period it launched the Kindle “Fire” model, which runs apps and streams films and other non text content.

The results left Amazon shares down 12%.

The company said that sales had grown by 44% and that in September, it had its “biggest order day ever for Kindle, even bigger than previous holiday peak days”.

It now offers four Kindle devices, including a 3G model.

Jeff Bezos, the founder and chief executive of Amazon, said: “In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.”

Amazon also forecast lower than expected sales for the next quarter, which includes the crucial Christmas period, and said it could even see an operating loss as it continues to invest in the Kindle Fire.

Amazon’s profit margins have generally been lower than other technology firms, a situation that analysts say is now catching up with them.

The Amazon strategic business development plan has always been about selling the technology delivery box at close to cost price and then making future profits from selling the software that runs on the box. Whereas Apple has been more about making a profit from the box and any extra profits from the software is a bonus.

Mobile phone company Nokia has reported that it made a loss in the third quarter as it continued to come under pressure from other phonemakers.It made to a net loss of £132 million in the three months to September, from a £289 million profit in the same period.

Net sales fell 13% to £8 billion.

Nokia has lost ground to competitors such as Apple’s iPhone and phones using Google’s Android operating system.

Shares in the Finnish phonemaker have plunged 41% so far this year.

Nokia said it sold 16.8 million smart devices in the quarter – 38% less than the previous year.

But the volume of mobile phones Nokia sold in total rose 8% to 89.8 million – reflecting its strength in cheaper and simpler so-called “dumbphones”.

The company’s new range of smartphones will use Microsoft’s operating system instead of Nokia’s legacy Symbian software.

“I am encouraged by our progress around the first Nokia experience with Windows Phone,” Nokia boss Stephen Elop said.

“We look forward to bringing the experience to consumers in select countries later this quarter.”

Earlier this year, Nokia announced thousands of job cuts as part of a 1bn-euro cost-cutting programme.

In April, it said it would cut 7,000 jobs – with 3,000 of the posts being transferred to consultancy group Accenture – as part of a strategy to focus on smartphones.

“The planned changes we have initiated are difficult, but necessary in order to align the company to our strategy,” Mr Elop said.

The world’s most valuable technology company Apple Inc has reported an 85% rise in its full year results.Net profit for the year ending 24 September was £16.5 billion.

However, its shares fell more than 5% in after-hours trading after fourth quarter iPhone sales were weaker than experts predicted.

Overall revenues totalled £17.66 billion for the three months- which was nearly £660 million less than Wall Street forecasts.

It is the first time that Apple has missed analysts’ sales forecasts since 2008.

During a conference call, chief executive Tim Cook suggested demand for the iPhone 4 had been dampened by rumours that a new model was about to be released.

“The reduction happened largely in the back half of the quarter as the speculation hit extreme highs,” said Mr Cook.

“However, we’re thrilled to be shipping the new iPhone 4S… and we’re very confident that we will set an all-time record in the December quarter for iPhone sales.”

Apple sold 17.1 million iPhones in the last quarter. That was a 21% increase on the same period last year, but analysts had expected sales of 20 million.

The firm said handset orders had also been affected by a decision to delay new partnerships.

“We opted to defer adding new carriers or countries during the September quarter knowing that we would launch the iPhone 4S very early in the October month, and we wanted to launch our new carriers with our latest products so we waited,” said chief financial officer, Peter Oppenheimer.

The earnings are the first to be released by Apple since the death of its co-founder Steve Jobs.

Mr Cook marked the occasion by paying tribute to his predecessor.

“Steve was a great leader and mentor and inspired everyone at Apple to do extraordinary things,” he said.

“I’d like to take this opportunity to express our gratitude for all of the condolences and expressions of support that we have received following Steve’s passing.”

Despite the iPhone figures Apple said it was “thrilled” by the results.

It sold 11.12 million iPads over the latest quarter, which was a 166% rise on the same period last year.

Sales of the Mac computers totalled 4.89 million, a 26% rise and an all-time record.

Mr Cook said he was particularly excited by China, where sales are growing at a “feverish” pace.

Greater China revenue accounted for 16% of Apple’s revenue in the fourth quarter, up from 2% in 2009.

“Certainly in my lifetime, I’ve never seen a country with as many people rising into the middle class that aspire to buy products that Apple makes,” Mr Cook said.

He said the company was also focussing on Brazil where sales had increased 118% over the past year, topping £562 million.

Apple warned that the recent flooding in Thailand might cause it problems sourcing hard discs and components for its Macs.

“I’m virtually certain there will be an overall industry shortage of disc drives as a result of the disaster,” said Mr Cook.

Apple co-founder and former chief executive Steve Jobs, died on Wednesday at the age of 56, after a  multi year long battle with pancreatic cancer.Jobs’ death was announced by Apple in a statement late yesterday. The Apple.com homepage features a black and white picture (above) of him with the words “Steve Jobs, 1955-2011″.

A message on the site read: “Apple has lost a visionary and creative genius, and the world has lost an amazing human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor.

“Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.”

The Silicon Valley icon who gave the world the MAC, the iPod, the iPad and the iPhone had resigned as chief executive of the world’s largest technology corporation in August, handing the reins to current chief executive Tim Cook.

A survivor of a rare form of pancreatic cancer, he was deemed the heart and soul of a company that rivals Exxon Mobil as the most valuable in America.

“Steve’s brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve,” Apple said in a statement announcing Jobs’ passing.

“His greatest love was for his wife, Laurene, and his family. Our hearts go out to them and to all who were touched by his extraordinary gifts.”

Job’s health had been a controversial topic for years. His battle with cancer had been a deep concern to Apple fans, investors and the company’s board alike.

In past years, even board members have confided to friends their concern that Jobs, in his quest for privacy, wasn’t being forthcoming enough with directors about the true condition of his health.

Now, despite investor confidence in Cook, who has stood in for his boss during three leaves of absence, there remain concerns about whether the company would stay a creative force to be reckoned with beyond the next year or so without its founder and visionary at the helm.

The news triggered an immediate outpouring of sympathy. Among others, Microsoft co-founder Bill Gates said he will miss Jobs “immensely”.

A college dropout, Buddhist and son of adoptive parents, Jobs started Apple Computer with friend Steve Wozniak in the late 1970s. The company soon introduced the Apple 1 computer.

But it was the Apple II that became a huge success and gave Apple its position as a critical player in the then-nascent PC industry, culminating in a 1980 IPO that made Jobs a multimillionaire.

Despite the subsequent success of the Mac, Jobs’ relationship with top management and the board soured. The company removed most of his powers and then in 1985 he was fired.

Apple’s fortunes waned after that. However, its purchase of NeXT – the computer company Jobs founded after leaving Apple – in 1997 brought him back into the fold. Later that year, he became interim CEO and in 2000, the company dropped “interim” from his title.

Along the way Jobs also had managed to revolutionize computer animation with his other company, Pixar, but it was the iPhone in 2007 that capped his legacy in the annals of modern technology history.

Two years before the gadget that forever transformed the way people around the world access and use the Internet, Jobs talked about how a sense of his mortality was a major driver behind that vision.

“Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life,” Jobs said during a Stanford commencement ceremony in 2005.

“Because almost everything – all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important.”

“Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

Apple has unveiled the latest iteration in its iPhone range, but there was no sign of the widely rumoured iPhone 5.The iPhone 4S, as the model will be known, boasts an improved camera, an extra antenna for faster loading, voice recognition software and a significantly extended battery life.

It will run the latest iOS5 operating system, which is set for release on 12 October.

The event was the first major announcement for new boss Tim Cook who took over from Steve Jobs in August.

The iPhone 4S, which will go on sale on 14 October, will be available in 16GB, 32GB and 64GB models – in both black and white.

It has the same look and feel as the existing iPhone 4 which was launched 15 months ago.

However, Apple said that updates to iOS meant the phone would boast some “200 new features”.

Shares in Apple fell by almost 5% within minutes of the eagerly anticipated launch, with analysts saying that investors and Apple fans had expected the latest version to be a more radical improvement over its predecessor.

However, the company’s shares later regained most of their losses to close down just 0.6%, albeit underperforming the NASDAQ index as a whole.

Among the additions is  a voice recognition software or a “intelligent assistant” that allows users to ask questions aloud and receive detailed answers back.

Siri, which began life as a third-party app, was purchased by Apple in 2010 but has yet to appear within its software.

Details of the new phone were unveiled by Apple’s Philip Schiller

For Apple’s new chief executive, the event was as much about making a statement about his leadership as it was new products.

Tim Cook had previously acted as interim boss, looking after the company while Steve Jobs was on sick leave.

Unlike his charismatic predecessor, Mr Cook left the biggest announcement of Tuesday’s event to a colleague – marketing boss Phil Schiller.