Apple stocks soar, defy gravity

Apple Inc. stock surpassed a 2012 record as investors look ahead to new products such as bigger screen iPhones and a wristwatch-like device that may jump-start revenue growth.

Activist investor Carl Icahn, who had pushed Apple to buy back more of its own stock earlier this year, said in a Twitter post, "All my chips still on the table and in fact increased position over past year."

Icahn owns 52.8 million shares in Apple worth $5.3 billion. In June, people familiar with the plans said Apple planned to start mass production on two smartphones with larger screens, a response to devices from rivals such as Samsung Electronics Co. and HTC Corp.

Spending Cash

The stock's rise shows investors are buying into the strategy outlined by Chief Executive Officer Tim Cook, who has been prodded to introduce bigger iPhones, give more money back to stockholders and introduce new devices. Cook has also vowed that Apple will enter a new product category this year and the company is said to be developing a smartwatch. Apple hasn't commented on the prospect of larger iPhones or a possible smartwatch.

Modest Growth

Apple's stock price makes it the world's most valuable company - more than 30 per cent bigger than Exxon Mobil Corp., the second largest by market capitalisation. Meanwhile, Samsung, Apple's biggest competitor, has seen its stock decline 8.6 per cent this year, pinched between competition with Apple for customers of high-end smartphones and Chinese manufacturers such as Xiaomi Corp. and Lenovo Group Ltd. for less expensive models.