Riken Mehta & Sagar Salvi
The internet is flooded today with all sorts of news and conjecture on Apple’s much anticipated product launch. The world’s most valuable company by market-cap will try to close that gap on Wednesday with the unveiling of the newest iPhone, which is widely expected to offer 4G wireless technology for the first time, and a 4-inch display, up from the current 3.5 inches.
According to analysts, Apple could sell as many as 10 million iPhones by the end of September alone. By contrast, it took its closest rival, Samsung Electronics, about 50 days to sell 10 million of its flagship Galaxy S III smartphone.
Apple’s new iPhone could contribute as much as a half a percentage point to US economic growth in the fourth quarter, according to analysts at JPMorgan Chase & Co. The company garnered 43% of its USD 108.2 billion in sales last year from the iPhone.
iPhone sales also are what investors watch the most closely. Apple shares typically rally ahead of, and sell off after, a major product launch. Apple’s shares fell in July after the company reported disappointing sales of the handset.
However, they have gained 15% in the past six weeks to touch an all-time high on Monday. For the year, the shares are up by 64%.
Chart: Timeline – iPhone launches versus Apple share price movement since previous launch