Apple Shares Up 5% with iPhone Anticipation

6:35 pm on September 6, 2005 | Category: Business

Shares in Apple (AAPL) were up $2.58 today (or 5%), closing at an impressive $48.80. Trading was almost twice the average volume, and took the company’s share price into record terriroty.

This sudden surge in the popularity of the stock is likely due to the fact that Apple and Motorola are widely expected to unveil the new iTunes mobile phone tomorrow, which will include Apple’s music downloading technology. This new device will combine the hugely popular iPod music device with the convenience of the cellular phone.

The iPod currently commands about 75% of the market for portable music devices, and over 20 million have been sold since their release in 2001. Cell phones, meanwhile, are sold in the hundreds of millions to users around the world. The sheer numbers involved show us that combining the two devices has enormous future potential, and have obviously excited many shareholders enough to go on a buying spree of Apple stock today.

Whether or not the iPhone will be able to live up to the anticipation still remains to be seen, however. The market for cell phones and portable music devices is extremely competitive, and the real test will be to see whether Motorola and Apple will be able to keep the hype alive after the device is in available in stores.

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    1. [...] Although Apple and Motorola’s new iTunes cell phone is a great concept, and probably one that has significant potential, the recently reduced ROKR has, in many ways, failed to live up to the anticipation surrounding its release. [...]

      Pingback by Telecommunications Industry News » The New iPhone Falls Short of Revolutionary — September 13, 2005 #

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