SAN FRANCISCO, Sept 14 Apple's stock
hit a 2016 high on Wednesday, with its market value peaking
above $600 billion for the first time since April as Wall Street
bet the technology company's newest iPhone would help shore up
Fueled by U.S. wireless carriers' reports of strong early
orders for the iPhone 7 as well as arch-rival Samsung
Electronics' widely-publicized recall of potentially
exploding Galaxy Note 7 smartphones, shares of Apple were up 4.6
percent at $112.57 and had gained 7 percent in the past two
Its market capitalization reached nearly $607 billion,
compared to $535 billion for Alphabet and $440 billion
After sinking to a two-year low in July that had portfolio
managers describing Apple as a value stock and no longer a
growth play, shares of the world's most valuable listed company
have since rebounded 25 percent.
On Tuesday, Sprint said pre-orders for the iPhone 7
were up nearly four times compared to last year's iPhone.
T-Mobile said pre-orders rose nearly four times
compared with its next most popular iPhone.
Potentially adding to demand for Apple's products, China's
quality watchdog said on Wednesday that Samsung would recall
1,858 of its Galaxy Note 7 phones due to its fire-prone
batteries, expanding the list of countries where the devices
have been recalled.
"With the carriers telling Samsung owners that Samsung wants
you to take your phone back into the store, well, people are
going to look elsewhere," said Longbow Research analyst Shawn
Specific details about sales of the new iPhone are scarce
after Apple announced last week it would not release weekend
sales data, saying the number was more a reflection of supply
With U.S. consumers less eager than in the past to replace
their devices, global smartphone shipments are likely to grow
less than 2 percent in 2016, compared to 10 percent last year,
according to market research firm IDC.
Revenue for Apple's fiscal year ending this month is likely
to fall 8 percent and then grow 4 percent next year, according
to the average estimate of analysts tracked by Thomson Reuters
(Reporting by Noel Randewich; Editing by Bernard Orr)