Power Point: If you build it, they will come

"It could well be that we are witnesses to the birth of yet another Apple ecosystem."

-- Sanford Bernstein analyst Craig Moffett in the New York Times Wednesday. After the bell, Apple (AAPL) reported a 15% jump in second-quarter net income to $1.21 billion. Sales of the iPhone surged 123% over the last quarter, with 3.79 million units sold.

"The iPhone has quieted any skeptics who thought this was a one-time event and for only the Apple enthusiasts," Moffett said. "The iPhone App Store is creating a self-sustaining competitive advantage for Apple." The iPhone's success offset a 3% drop in Macintosh computer sales--the first decline in five years. The stock was up 3% in after-hours trading to $125.08.

Meanwhile AT&T (T), the iPhone's exclusive U.S. carrier, announced a 9.7% profit decline. But that beat expectations, and the stock rise slightly. --Jessica Shambora