Apple's Mac Shows Muscle

Earlier in the year, Apple delayed Leopard's release because it had needed more software engineers to help keep the iPhone's debut on track. In the meantime, however, it has updated its line of Macs, giving them more features at the same or lower prices than previous models.

Macs still cost more than most Windows-based PCs, with the least expensive model retailing for $1,199.

Nonetheless, preliminary estimates suggest that Mac sales will widely exceed analysts' forecasts.

The market share data also show that more people are using Apple software to access the Internet. Apple's Safari Internet browser accounted for more than 5% of Internet traffic in September, compared to 3.53% a year earlier.

Investors are banking on strong Mac sales to beef up Apple's already impressive financial results. At prices that are much higher than iPods and iPhones, Mac sales are a major plank of Apple's revenue. Its margins are also higher than iPods, which have seen sales growth fall precipitously as lower-end models sell in much greater numbers than premium versions.

Gauging the Mac's profitability against that of the iPhone has proved a challenge for investors and analysts because of uncertainty around the cost of components, the fees Apple charges AT&T(T Quote) and its piecemeal accounting for iPhone sales.

Apple shares were recently up $2.34, over 1.5%, to $155.81, just shy of its all-time intraday trading high.