Apple soars over iPhone optimism

Apple’s stock closed at an all-time high yesterday, surpassing a 2012 record as investors look ahead to new products such as bigger-screen iPhones and a wristwatch-like device that may jumpstart revenue growth.

Apple rose 1.4% to $100.53 (€75.8) yesterday, topping the split-adjusted record of $100.30 reached on September 19, 2012, just before the iPhone 5 went on sale. The shares have gained 25% this year. After rising more than sevenfold following the 2007 debut of its smartphone, Apple stock lost a third of its value in the year after the iPhone 5’s release on concerns that the company was running out of hit product ideas without co-founder Steve Jobs. The tenor has changed, with analysts estimating record sales for the next batch of iPhones, set to be released later this year.

In June, sources said Apple planned to start mass production on two smartphones with larger screens, a response to devices from rivals such as Samsung Electronics and HTC. The stock’s rise shows investors are buying into the strategy outlined by chief executive Tim Cook, who has been prodded to introduce bigger iPhones, give more money back to stockholders, and introduce new devices. Those shareholders are now getting what they want. The company is also said to be developing a smartwatch, and Morgan Stanley’s Katy Huberty has said Apple may sell as many as 60 million of the new wearable devices in its first year on the market.