Apple stock soars to new high

Still riding high on its stellar earnings, Apple’s stock soared to a new intraday record Friday morning.

Shortly after the markets opened, Apple’s stock climbed to more than $120, above the previous closing high of $119 and intraday high of $119.75. Investors are still crowing over Apple’s financial performance in its first quarter of 2015, in which the company raked in $18 billion in profit — a quarterly record for a publicly traded firm.

The trusty iPhone was the engine of Apple’s sales, accounting for 69 percent of its revenue. Drawn by the gadgets’ bigger screens, consumers snapped up 74.5 million phones during the quarter, which ended Dec. 27. What’s more, the iPhone’s average selling price climbed $50, driving Apple’s profits even higher.

“They have been able to increase volume and raise prices,” said analyst Colin Gillis of BGC Financial. “It’s a thing of beauty.”

But now that Apple has climbed so high, the question of what’s next is more pressing than ever. Only a fraction of existing iPhone users have upgraded to the latest phones, suggesting that Apple will enjoy the success of the iPhone 6 and 6 Plus for some time. But Apple will likely face pressure as consumers go longer between smartphone upgrades, as they have with other gadgets, Gillis said.

“They have a profit empire,” Gillis said. “But does any empire ever last?”

Above: Apple CEO Tim Cook flaunts the iPhone 6, which unleashed a gusher of sales for the company (Justin Sullivan/Getty Images).

 

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  • RANDY WILHELM

    THOSE 2 GUYS ON TV HAVE NO CLUE HOW MANY IWATCH’S AAPL WILL SELL. BUT IT WILL BE AT LEAST 40 MILLION IN FIRST YEAR

 
 
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