Apple stock hits new high on gadget rumours

The company's logo in the lobby of New York's flagship Apple store.

The company's logo in the lobby of New York's flagship Apple store.

Published Aug 20, 2012

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New York - Apple stock price leaped to a new high on Friday amid rumours it is poised to hit the market with new versions of iPhone, iPad, and Apple TV devices.

Apple shares were trading at $644.52 (about R5 100) mid-day on the Nasdaq exchanged, buoyed by a Jeffries investment bank analyst advising clients that the price could climb to $900.

The arrival of the iPhone 5 “will be the biggest handset launch in history,” Jefferies investment bank analyst Peter Misek said in a note raising the target price for Apple stock and giving it a 'buy' rating.

Jefferies reasoned that Apple is positioned to take a significant portion of the profit to be generated by hot tends in smartphones, tablet computers, and gadgets linking to the Internet on latest-generation 4G networks.

The Internet has been abuzz with unconfirmed reports that Apple will introduce a new iPhone, perhaps with a larger screen, at a press event in September.

The Cupertino, California-based company is also believed to be readying a smaller version of its market-ruling iPad and a revamped Apple TV box, referred to unofficially as “iTV,” that routes video or programming to televisions.

“We believe the iTV is in full production,” Misek said.

Jefferies raised its forecast for iPad sales from 18 million to 25 million for the third quarter and from 22-25 million to 30 million for the final three months of this year.

Apple has the largest market capitalisation in the United States, with its stock giving it a value of about $602.25 billion. - Sapa-AFP

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