Apple (NASDAQ:AAPL) shares reached for the first time the threshold of $700 on Nasdaq, setting a new record because of the volume of pre-orders for the iPhone 5. The new smartphone from Apple, expected to be the best selling model of the company, recorded over two million pre-orders in one day. Apple stock reached Monday a peak months of $700.44 per share and closed at $699.78, showing an advance of 73% for this year.
iPhone 5 pre-orders were over two million units on Friday, the first day of its debut on the market, doubling the record set by its predecessor, Apple announced. Since the launch of iPhone in 2007, smartphones have become the main source of revenue and profit for Apple. The phones generate about two-thirds of company profits. Signals indicating strong demand for the new model have generated optimism among investors, an indication that Apple will maintain the pace of growth in recent years and will withstand increased attacks from competitors, such as Samsung Electronics and Google.
The company began Friday to take pre-orders for iPhone 5 and announced that deliveries will arrive starting September 28, one week after the appearance of the model in stores, suggesting poor production capacity in relation to demand. Analysts’ estimates compiled by Bloomberg show sales of 58 million units for the iPhone 5 by the end of this year, which would generate revenue of $36.2 billion for the company.
After it took in 2010 the title of the largest IT company in the world by market capitalization, surpassing Microsoft, last year Apple became the largest company in the world, pushing oil giant Exxon Mobil in second place. This year, Apple has become the company with the largest market capitalization in U.S. history and continues to extend its lead. At the close of stock market session on Monday, its market capitalization was $656 billion.
Apple shares topped the $400 threshold for the first time last year, reaching $500 in February and then $600 in July.
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