Apple Inc. shares hit a record high on optimism the next iPhone will drive a resurgence in sales and help the company’s services businesses grow.
The stock climbed 0.9 percent to US$133.29 at the close of trading in New York on Monday, the highest on record, Bloomberg reports.
The increase valued Apple at about US$699 billion, making it the world’s most highly capitalized company.
Google parent Alphabet Inc. is next at US$573 billion, according to data compiled by Bloomberg.
Analysts are predicting a further gain in Apple shares in the next year, based on the average 12-month target price of US$142.58, according to data compiled by Bloomberg.
The intraday peak for the shares is US$134.54, set in April 2015. The previous closing record was US$133 in February of that year.
The stock then dropped for more than a year on concern about waning smartphone industry growth and Apple’s prospects beyond the iPhone.
However, the company recently reported stronger-than-expected iPhone sales during the key holiday quarter, helping the stock reach a new high.
Apple introduced iPhone 7 in September, but the model failed to convince as many existing customers to upgrade as its predecessor did.
Nonetheless, it succeeded in attracting new smartphone buyers to the Cupertino, California-based company.
That bodes well for the next iPhone later this year, which is expected to be a more substantial upgrade, according to analysts.
“It’s probably just a continuation of the rally following the last quarter report and guidance for the second quarter that’s giving investors a bridge to the next iPhone that many are getting excited about,” said BTIG analyst Walter Piecyk.
The stock was also buoyed by the equity market, with all US benchmarks ending the day at records. The Dow Jones Industrial Average, which includes Apple, climbed past 20,400 for the first time.
More iPhone users increases the chances Apple can sell software, services and subscriptions like Apple Music and iCloud.
Services revenue grew 18 percent to US$7.2 billion in the most recent period, and the company aims to double the annual total to more than US$50 billion by fiscal 2021.
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