Apple has just reported record earnings for Q2 2010. Earnings and profits were the best ever for a non-holiday quarter, and sales of Macs and iPhones were up by a big margin. The only blip is iPod sales — down 1 percent year-on-year.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Steve Jobs in a statement. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

Highlights:

• Q2 2010 revenue = $13.50 billion
• Profit = $3.07 billion, or $3.33 per diluted share. (Last year, revenue = $9.08 billion and profit = $1.62 billion)
• Gross margin = 41.7 percent, up from 39.9 percent last year
• 2.94 million Macs sold (up 33 percent year-on-year)
• 8.75 million iPhones sold (up 131 percent year-on-year)
• 10.89 million iPods sold (down one percent year-on-year)

Apple has just unveiled a new iPhone app that, as usual, focuses on taking existing iPhone apps and functionality and applying them to a relatable real-world experience, as conveyed by a pleasant and unassuming narrator.

The “Backpacker” ad follows a young traveler in Barcelona as he uses his iPhone 3GS to find hostels with the free Hostelworld.com application, email pictures to his mom and use the $24.99 Jibbigo app to translate for him on the fly.

Not covered in the commercial? The kidney the narrator had to sell to afford the AT&T 3G international roaming charges he incurred when he returned from his trip. You should have switched to WiFi only, my son.

Inside every iPhone is a moisture sensor: a small dot of liquid-sensitive material that turns bright pink if the iPhone’s insides have been exposed to being submerged. It’s the method Apple uses to protect itself from having to replace iPhones that clumsy customers have dropped in a puddle, their beer or a toilet.

Now a California woman is suing Apple over these moisture sensors, claiming that two separate iPhones died and were then denied replacement by Apple because the moisture sensors had been triggered. The woman, Charlene Gallon of San Francisco, claims otherwise.

Apple sent Gizmodo a formal letter asking for its iPhone back (proving it was genuine) — and Gizmodo is returning it, along with a nice note asking Apple to go easy on the kid who lost it.

Gizmodo editorial director Brian Lam says Apple called him today asking for its iPhone back. He said he’d be happy to oblige, if he received a formal written request from Apple’s legal department.

He duly received the following:

It has come to our attention that Gizmodo is in possession of a device that belongs to Apple. This letter constitutes a formal request that you return the device to Apple. Please let me know where to pick up the unit.

Sincerely,
Bruce Sewell,
Senior Vice President & General Counsel
Apple Inc.

Lam wrote back putting him in contact with his colleague Jason Chen, who actually has the phone.

Happy to have you pick this thing up. Was burning a hole in our pockets. Just so you know, we didn’t know this was stolen when we bought it. Now that we definitely know it’s not some knockoff, and it really is Apple’s, I’m happy to see it returned to its rightful owner.

P.S. I hope you take it easy on the kid who lost it. I don’t think he loves anything more than Apple except, well, beer.

As well as mentioning that Gizmodo didn’t know the iPhone was stolen when they bought it, Lam also says the guy who sold them the iPhone had earlier tried to return Apple it to Apple. Apparently, he called customer service but go the runaround.

The “sorry Apple engineer” who lost a 4G iPhone at a Bay Area bar has been identified as Grey Powell, Gizmodo reports. Powell is a 27-year-old software engineer with a taste for the sauce (judging by his pictures, like this one above with a PBR). He left the test unit at the Gourmet Haus Staudt in Redwood City several weeks ago.

“I underestimated how good German beer is,” he typed into the next-generation iPhone he was testing on the field, cleverly disguised as an iPhone 3GS. It was his last Facebook update from the secret iPhone. It was the last time he ever saw the iPhone, right before he abandoned it on bar stool, leaving to go home.”

Left on a stool, the iPhone was handed to a guy sitting next to Powell. The guy asked around to see if anyone had lost it, but when no one claimed it, he took it home.

When he woke up after the hazy night, the phone was dead. Bricked remotely, through MobileMe, the service Apple provides to track and wipe out lost iPhones. It was only then that he realized that there was something strange that iPhone. The exterior didn’t feel right and there was a camera on the front. After tinkering with it, he managed to open the fake 3GS.

However, Gizmodo does not explain how the iPhone came into their possession — which may be the most important part of the story. “Weeks later, Gizmodo got it,” is all that is said. Gizmodo publisher Nick Denton paid just $5,000 for the iPhone, he admitted to the AP. According to California law, the iPhone is stolen even it was accidentally left at a bar. The finder is legally obliged to return it to Apple. Instead, they sold it to Gizmodo, who at the time of purchase knew it was Apple’s property.

Via 9to5Mac.

Gizmodo publisher Nick Denton says the “sorry Apple engineer” who left the 4G iPhone at a bar may have been identified. He says he’s calling the poor bastard, and the story is likely to follow.

Earlier in the day Denton promised to reveal the full story of how Gizmodo acquired the next-gen iPhone. The story will is a “corker” (a good story), Denton tweeted earlier.

Minutes ago Denton tweeted the following:

iPhone update. We think we’ve identified the sorry Apple engineer who left the next-gen phone at the bar. Calling in a min.

Earlier Denton tweeted that Gizmodo had paid for the pre-production iPhone, raising the likelihood that Gizmodo is in possession of stolen goods. According to California law, the iPhone is stolen even it was accidentally left at a bar. The finder is legally obliged to return it to Apple. Instead, they sold it to Gizmodo, who at the time of purchase fully knew it was Apple’s property (how could they not?).

Techcrunch and a couple of other sites are saying the price was $10,000 – but no one is offering any evidence.

Apple still hasn’t officially responded to the story.

UPDATE: Denton paid just $5,000 for the iPhone, he told the AP. As Merlin Mann tweeted: “Denton inflates traffic for a gadget blog by buying a stolen phone that doesn’t work? It’s like Christmas Morning for why the web sucks.”

Two analysts Wednesday told investors Apple’s stock price could hit up to $300 over the next year, a mark helped by high-flying expectations for sales of the iPhone, Mac and iPad. Apple is scheduled to release its quarterly earnings report early next week on April 20.

Piper Jaffray analyst Gene Munster expects Apple shares to touch the $299 point within a year, upping his early projection of $287. Munster bases his new stock price on a slip-of-the-tongue by Apple, when the Cupertino, Calif. company announced it had shipped more than 50 million iPhones. That figure may mean Apple sold 7.8 million iPhones during the March quarter, higher than Munster’s expectation for 7.5 million iPhones sold during the first quarter of 2010.

Yesterday’s news of updated MacBooks indicates Apple has placed a wager, putting its new iPad device up against a growing pack of low-cost PC netbooks. But will the Cupertino, Calif. company win this bet?

“Apple is betting [the] iPad’s form factor, engineering, design and rich interactive content experience, with Apple’s brand, can create and lead a new portable computing metaphor where Apple has first mover advantage (product, install base, content/apps momentum,” RBC Capital Markets analyst Mike Abramsky told investors Wednesday.

To help you handicap next week’s earnings report set for April 20, we’ve compiled analyst expectations for iPhone sales during the second quarter of 2010. The range is from a high of 7.85 million from independent Apple analyst Turley Muller, who blogs at Financial Alchemist, to a low of 6.0 million from Citigroup analyst Richard Gardner. Even if Apple’s results are on the low side, it would mean a 58 percent increase over the same period in 2009.

If Muller is correct — and he’s often right on target — Apple could announce a 107 percent jump in handset sales. You be the judge.

Apple’s upcoming iPhone OS 4 removes any mention of Google from the iPhone’s search feature, the latest step by the Cupertino, Calif. company to erase any connection with the Mountain View, Calif. Internet giant.

Already part of iPhone OS 3.2 used by the iPad, the elimination of the word “Google” from the iPhone’s Safari Web browser is part of iPhone OS 4, currently in beta stage. The current iPhone 3.1.3 includes a “Google” button in the bottom right corner of the handset’s touchscreen keyboard. The beta software will likely be made public this summer.