Apple just reported their killer Q1 results. I was expecting them to beat estimates, but this far exceeds anything I could have guessed. Oddly, Apple's stock was off 2% today and right now shows a downward trend in after hours trading.

Highlights of the report include a 50% increase in iPod sales over the same period last year, and a 28% increase in Mac's. Gross margin increased to 31.2% from 27.2%.

It will be interesting to see what the stock does tomorrow, although I expect there to be a lot of buyers. With the iPhone coming in the 2nd half of 07, I bet that Apple stays on a pretty nice trajectory for the forseeable future.

--Chris