Pressed for details on the iPhone's future in Europe and how its lack of "3G" support may affect its popularity, Cook repeated that Apple considers the iPhone "a breakthrough product" and expects it to be received well in the European market as well.

Cook told an analyst that the early iPhone sales during the June quarter skewed towards the $599 8GB models.

Mac sales are up, way up

Oppenheimer said that Mac shipments in the U.S. grew 32 percent year over year -- 2.5 times what IDC's predicted industry growth rate for the quarter. Mac product sales represented 60 percent of Apple's total quarterly revenue for the year -- 1.76 million Macs were sold.

Music products and services represented 40 percent of Apple's total quarterly revenue, said Oppenheimer. The company shipped 9.8 million iPods for the quarter, up 33 percent year over year.

Sales of Mac notebooks -- MacBook Pros and MacBooks, combined -- accounted for 64 percent of all Macs sold, said Oppenheimer.

Apple also saw very strong sales in its Education channel. It set a new all-time record for quarterly Mac sales there, too. The MacBook saw particularly strong sales in the K-12 and higher education market, said Oppenheimer. Apple reported a 36.9 percent gross margin for education.

Oppenheimer said that the June quarter -- what Apple reported Wednesday -- is historically driven by the start of the Education market buying season. The company's fourth quarter has been mixed, sometimes the company sees an increase, sometimes a decrease.

Store sales

Apple retail store sales saw 33 percent year over year growth for the quarter, said Oppenheimer. The company has remodeled 15 of its store and eight new stores -- 185 in total, worldwide. Apple expects to open 12 new stores for the current quarter -- 197 all told.

Direct sales revenue represented 53 percent of Apple's annual sales, versus 49 percent for the same quarter a year ago.

Apple saw $5.1 million in average revenue per store, up from $4.7 for the same quarter a year ago. 330,000 Macs were sold through the stores. more than 50 percent of Mac buyers were new to the Mac, he said. 21.9 million people visited Apple stores this past quarter.

Apple is also expanding its relationship with electronics retailer Best Buy, according to Tim Cook. The company started with 50 stores nationwide that carried Macintosh hardware, and should end the year with almost 300. Both Apple and Best Buy are very happy with their burgeoning relationship, said Cook, and that's why Apple and Best Buy continue to expand their partnership.