) after it reported earnings last night. In a note to clients, Gabelli & Co. writes, "Reported record 3Q11 results mainly driven by strong shipments of iPad, iPhone, and strengths in sales in Asia Pacific. Strong iPhone shipment resulted in a more favorable product mix and high gross margin. Overall component cost is expected to be favorable in 4Q11. Pricing of electronics components, such as NAND, DRAM, LCD displays, batteries, and optical drives, is expected to fall at or above the historical trend. Hard drive supply is currently constrained and its price is expected to decline less than the historical trend." Shares of AAPL are up $21.79 to $398.64 in pre-market trading.