Apple Inc. (AAPL) executives said on Monday rising costs and expected lower average selling prices likely won't prevent the consumer electronics giant from meeting its guidance for the fiscal first quarter, hinting that some new gadgets would boost sales.

The Cupertino, Calif.-based company, which reported a 47% rise in fiscal fourth quarter earnings earlier in the day, said gross margins for the current quarter would likely shrink to 34%. It blamed the expected contraction on rising shipping and component costs.

But Chief Operating Officer Tim Cook, speaking on a conference call following the company's earnings, said the narrowing margin reflected a host of new products "we have and will announce" that have lower gross margins. Cook, who shepherded the company during Chief Executive Steve Jobs medical absence, wouldn't identify the gadgets.

Cook's comments heighten expectations Apple is designing a tablet computer that would build on the success of its iPhone series of smartphones. A variety of blogs and other news sources have reported the company could launch a tablet computer sometime in 2010.

On Monday, Apple blew away expectations for the fourth quarter, reporting earnings of $1.67 billion, or $1.82 a share, up from $1.14 billion, or $1.26 a share, a year earlier. Revenue jumped 25%, to $9.87 billion. The company's shares jumped more than 8%, to an all-time high of more than $204 in after-hours trading. Apple recently traded at $201.95.

Apple, which is notorious for giving conservative guidance, said it expects fiscal first-quarter earnings of $1.70 to $1.78 a share on revenue of $11.3 billion to $11.6 billion. Analysts polled by Thomson Reuters expect $1.91 and $11.45 billion, respectively.

Apple said its margins would also take a hit as sales of its highly profitable Snow Leopard software begin to peter out. Snow Leopard is Apple's latest operating system software, which went on sale in late September.

Apple also said it expects to incur significantly more shipping charges in the quarter, but Cook didn't describe what products were driving up the costs.

Apple's confidence comes mainly from its iPhone, sales of which are expected to continue to thrive in the holiday season despite growing competition phones based on Google Inc.'s (GOOG) Android operating system.

The iPhone's debut in China in the next few months should spur sales significantly. Also, Apple's original and exclusive agreements with carriers to sell the device are expiring, opening Apple up to selling the iPhone through multiple carriers in the same country.

Meanwhile, iPhone demand among businesses, an undeveloped market for Apple, remains "very strong", Cook said, and the online iPhone software peddling App Store remains a "country mile" ahead of competition.

Company executives said they battled an iPhone 3GS shortage in the fourth quarter as demand for Apple's new smartphone outstripped supply. They said inventory was in balance by October.

Meanwhile, during the quarter, the company it spent less than expected on a new line-up of videocamera iPods.

The company also shed no light on when it will begin accounting for iPhone sales under new accounting rules that Apple says will better highlight the iPhone's contribution to the company performance. Rather than defer iPhone revenue over 24 months, as Apple has been doing, it can now record the entire sale instantly.

Apple says it continues to evaluate when to make the changes.

-By Ben Charny, Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com