Apple Computer announced profits of $106 million this quarter, punctuated by sales of over 275,000 iMacs, making the new blue/green box the fastest selling computer in the company's history. The company had revenues of $1.6 billion for the quarter. Apple also announced that it will be adding Best Buy to the short list of companies that will sell the iMac, starting in November.

"It's a great finish of a great year," said Apple interim CEO Steve Jobs. "Looking forward, we hope to sell a lot of copies of Mac OS 8.5 and ship a lot of iMacs this holiday season with our partners CompUSA and Best Buy."

According to a survey publicized by Apple, 29% of iMac buyers are new computer buyers while 12% also own a Windows machine. The majority of iMacs (58%) are bought by existing Macintosh owners.

Apple also launched the latest upgrade to the Mac OS today, version 8.5. Mac OS 8.5 continues to add Windows-like functionality, including an Internet search engine called Sherlock and a new version of AppleScript. It even offers the famous Alt-Tab method of switching between running applications. Mac OS 8.5 will be available on October 17 for $99