The release of the iPhone 5 seems to be working wonders for Apple. Not only are they looking at a strong possibility of surpassing rival company Samsung in the smartphone market, but their stocks seemed to have ended on a relatively higher note as well post the launch of the latest device.
Apple’s stocks crossed the $700 barrier, a mark of an excellent summer for the company. The prices of shares were at 1.2 percent to $699.78. Later, during the after-hours trading, the prices of their shares rose to $700 even. They were ultimately traded off at $699.80. Another reason why their investors rejoiced was the pre-orders of the iPhone 5 which hit approximately 2 million in the very first go within 24 hours. The pre-orders of their iPhone 4S had managed to reach 1 million a year ago. The new product seems to have successfully doubled this number. Major carriers such as AT&T and Sprint were quick to add that the pre-orders had made a record, besides meeting the usual expectations. Analysts are now raising their estimates about the sales of the new iPhone.
However, if one is to think deeper, probably the stocks crossing the $700 barrier may not be of much value to Apple, a company that is mostly marked by their market capitalization. The current worth of Apple stands at $654.81 billion and is currently regarded to be a company that holds immense amount of value in history. Their stocks have caught onto the rising trend post the release of the iPhone 5, after having fallen down for a brief period in the start of summer. However, over the last couple of months, the stocks have been steadily rising, almost increasing by a third as compared to their status in the month of May this year. Another possible reason for the shares to rise could be expectations building around Apple to introduce a smaller iPad, the announcement of which was expected around last week. The company is infact rumoured to be working on releasing their iPad Mini sometime in the coming month.
Going by the pre-orders, Apple seems to have hit bull’s eye with their latest product, the iPhone 5. Things may be effectively working in their favour and analysts would agree that the chances of the iPhone 5 replacing the Galaxy S3 as the leading device in the smartphone market are heavy!
