700,000 iPhones Sold Means 5% Shares Climb for Apple

Latest reports say that Apple has managed to sell an estimated number of 700,000 iPhones since its release, on Friday. It is only natural that this huge number would also reflect itself in the company's value. In the last days, its shares have registered a considerable raise on the market.

Apple's share price has increased with 5 percent and is now set at USD 127. That meets the most optimistic hopes that Apple has ever dared to have before the launch of their only phone.

Still, 700,000 is a huge sales number for a product which also comes with quite a large number of disadvantages that few people have given any importance in the past. This is more than Motorola's RAZR phone managed to reach in the first month of sales.

At the beginning of year 2007, in February, Apple's shares were estimated at USD90, which shows a considerable evolution for this company. AT&T's shares, on the other hand, fell 35 cents on the New York Stock Exchange. They are probably set to have their part of the success sometime later, when the huge number of new subscribers for a 2 year contract will start paying their share to the company.

The selling price for the iPhone is more than twice its manufacturing costs, which results in 55 percent profit rate for Apple. Moreover, the company plans to sell 10 million such devices until the end of next year. In these circumstances, it looks only natural that the company's shares register a sudden ascent on the stock market.

Apple will also launch their iPhone on European market on the 1st of November, this year. For this, they have partnered with T-Mobile in order to make the handset first available in Germany. Asia will also have its share of the iPhone, but only at the beginning of next year.