Apple said third-quarter sales rose to $8.34 billion, up from $7.46 bilion a year ago, due in part to strong sales of the iPhone. Net income rose to $1.23 billion, up from $1.07 billion. However, the company said iPod shipments fell 7% to 10.2 million.

During the call, Apple executives talked about the iPhone shortage, their dislike of netbooks and how the iPhone is cannibalizing the iPod. Highlights from the live-blog of the earnings call below.

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