The Apple of ARM group's eye

Cambridge-based ARM, whose chip designs are used in a raft of digital products such as mobile phone handsets and MP3 players, rose more than 3 per cent at one point after Apple shattered Wall Street hopes with second-quarter figures.

Apple sold a record 8.8 million iPhones in the three months to March 27 – more than double the number sold a year earlier – making up 40 per cent of the group's sales. Overall revenues were 49 per cent ahead of a year earlier at 13.5 billion dollars (8.8bn), sending Apple's shares to a record high overnight.

ARM Holdings was also boosted last week when strong results from chipmaker Intel kicked off the US earnings season in healthy fashion.

Apple's trading figures do not include sales of the its new iPad. The group has delayed the international launch of the tablet computer to the end of next month due to unprecedented demand in the US, where it sold 500,000 in the first week.

Meanwhile Apple sold 2.9 million Macs – up 33 per cent on a year ago. IPod sales edged 1 per cent lower, but the firm still managed to shift 10.9 million of the digital players.