Apple’s success comes in many forms but so far the most obvious is the company’s soaring stock price. The Cupertino giant’s stock finished strong this summer by crossing the $700 mark at the end of the trading day.
The share price jumped 1.2 percent to $699.78 initially, but then capped above $700 during after-hours trading for a few minutes. The last trading session put it at $699.80.
The constant rise of the company’s fortune can be attributed to the positive reception of Apple’s latest product, the iPhone 5. Apple claims that the pre-order list for the iPhone 5 reaches a record breaking 2 million units in the first 24 hours, doubling the previous 1 million record for iPhone 4S about a year ago. Sprint Nextel and AT&T confirmed that pre-orders for the units over the weekend have also reached fever pitch.
The said announcements modifies predictions of some analysts how the new iPhone will fare in the market.
Although the $700 mark in stock price does not do much objectively as the value of a company is measured by its market capitalization, it was a good psychological benchmark. Apple is valued at around $654.81 billion, making it the most valuable company in the world.
The company’s stock price gradually rise since May and is up by about a third since that month. The positive in the stock price even before the announcement of the new iPhone 5 was a telling sign of the growth of the company.
With the anticipation of the iPad Mini, which many think would be announced next month, also spurred the rise in the stock price.
The latest estimate for iPhone sales starting this coming Friday from Piper Jaffray’s Gene Munster is, at worst, six million while the best prediction is at eight million. The estimate was based on historical sales record starting from the first iPhone, which sold a meager 270,000 units during the device’s first 30 hours way back in ’07. iPhone 4S sales last year took a week to move about 4 million units.
Munster said: “Given the 2 million preorders for iPhone 5, it would require roughly 4 million sales at retail, or 33 percent year-over-year growth.”
“We believe the 33 percent year-over-year growth hurdle should be well within reason for Apple on the iPhone 5 launch, thus 6 million launch weekend units should be worst case.”
The iPhone 5 will go on sale this Friday at 8 AM local time at retail partners and Apple’s own retail stores.
There have been reported forming of a line of about 10 buyers the company’s Manhattan retail store on 5th Avenue as early as Monday morning.