Apple Inc's (NASDAQ:AAPL) shares may just reach $600, following reports that the company sold 9 million units of new iPhones in three days. The speculations over a deal with China Mobile may also fuel Apple's stock surge along with recommendations from some of the most respected market analysts.
Days before Apple Inc (NASDAQ:AAPL) was scheduled to reveal its latest iPhone models, rumours were circulating that the Apple will soon close a deal with China Mobile but nothing official has been announced yet even after the launch of the iPhone 5S and iPhone 5C in China.
Apple's investors are hoping that the deal will be done before the Chinese New Year comes in early 2014. Many analysts give investors of Apple Inc an educated guess to determine whether or not Apple's share price will surge to $600.
Goldman Sachs' Bill Shope said that Apple's reported iPhone opening-weekend sales figures were a major surprise for most analysts and the investors they dealt with. He noted that there key differences with the Apple's iPhone launch in 2013 from the previous year. Mr Shope recommended investors to buy Apple stocks now.
Chris Whitmore, an analyst from Deutsche Bank said that the new iPhone started strong. He said the initial iPhone demand is getting stronger than previous expected as stockouts and shortages were seen over the weekend. The Deutsche Bank analyst raised Apple Inc's stock price target to $575 from $480 and recommends investors to buy Apple shares.
The 9 million units sold may be comparable to the expectation of 6.4 million units sold by StreetAccount. Mr Shope also said the iPhone 5S had no preorder period, so some of the supposed preorder sales from online customers may have just been transferred on opening day. He said overall, the 9 million units sold was regarded as a positive not for Apple. He raised Apple's stock price prediction to $560 from 530.
Many analysts like Mr Shope believe that Apple Inc may be headed to a share price of $600. If this happens, it will be the first time that Apple will reach that price since the company's stock had crossed the $700 mark. Several people had also predicted in the past that Apple shares could cross the $1,000 mark if Apple would have continued its momentum from 2012.
The launch of the iPhone 5S and iPhone 5C might just be what Apple needs to reach the $600 mark by 2014. On Sept 23, Apple's share price increased by 5 per cent to $490. Given the high demand of Apple's premium model, the iPhone 5S, the company may continue to see higher revenues in the coming months.
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