Apple Stock Hits High: Is iPhone In the Future - KLTV.com - Tyler, Longview, Jacksonville |ETX News

11/22/06

Apple Stock Hits High: Is iPhone In the Future

Shares of Apple Computer Inc. hit their highest ever on Tuesday as the dawn of the official holiday shopping season drew closer though trading volume was well below the daily average.

Shaw Wu, an analyst with American Technology Research, attributed the strength in the company's stock to solid performance in both the company's Mac and iPod businesses. And, he added, Microsoft Corp.'s answer to the iPod _ Zune _ "doesn't seem to be selling well," with momentum fading after a strong first couple of days.

Microsoft released the portable music player and service a week ago.

Wu currently expects Apple to sell 14 million iPods in the final quarter of this year, but he added there is a "very good chance" they will sell more. The company is up against tough comparisons in the year-ago period, when iPod sales were about 14 million, with customers gobbling up the newest video and nano iPods.

Apple's shares rose $1.47 to $87.94 in midday trading on the Nasdaq after hitting $88 _ highest in the company's history _ earlier in the session. The stock is up 22 percent since the beginning of the year.

Microsoft hit a 52-week high of $30 in morning trading, slipping back to $29.92, up 3 cents.

Wu, who called his estimate of 14 million iPods sold "likely conservative," added he expects the company to sell 1.8 million Macs.

Apple is also said to be developing cell phones, and Wu said in a note to investors Monday the company is likely working on a second iTunes phone, which will also feature messaging capabilities. He added he remains uncertain on the exact timing of the iPhone.

"However, we believe we are closer to resolution and our conviction remains high that AAPL's first cell phone will be released in 2007 _ potentially (the first half of 2007)," he wrote.

Source: AP

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