Apple Becomes the World’s Most Valuable Company

Apple has become the world’s most valuable company, with high sales expectations of the iPhone 5 due to be announced on September 12, being the main reason for this. The Cupertino company’s shares rose 2.6% to $665.15 at the close of trading in New York, making for a market value of $623.5 billion. This surpasses the $616.3 billion record set by Microsoft on December 27, 1999 during the internet boom, according to data compiled by S&P Dow Jones Indices. The iPhone currently accounts for 70% of the company’s profits.

Apple’s introduction of the new iPhone will represent a design overhaul of its top-selling product, according to two sources knowledgeable of Apple’s plans. According to FBR Capital Markets, the next iPhone “could be the most impactful product upgrade in Apple’s history”, with an expectation of 250 million units sold over the life of the device.

The company’s market value has surged by more than seven times since the original iPhone was released in 2007 and the stock has climbed 64% this year alone. Apple plans to introduce a smaller, cheaper iPad by the end of this year, likely to head off the potential threat of Microsoft’s Surface tablet due for release on October 26.