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Apple's shares rise on new iPhones orders

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Apple's shares rise on new iPhones orders
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With its latest iPhone Apple’s back in the running after dropping behind Samsung in sales in between July and September.

Analysts say many delayed people delayed buying an iPhone until the new model was available.

Then the flood gates opened with orders for over two million in the first 24 hours.

That even though some industry watchers complained the new iPhone is disappointing.

Napoleon Biggs of the ‘Web Wednesday’ group said: “I don’t think it is revolutionary enough to get people. The buzz is not about how incredibly revolutionary it is. The buzz is about, oh, they’re doing things that were needed, like connecting into social media, allowing you to take panoramic photographs, enlarging the screen, so I don’t think it will create a new buzz.”

Taking advantage of that lack of buzz, Samsung is fighting back by running adverts pointing out its newest offering – the Galaxy S3 – already matches or beats most of the iPhone 5’s specifications.

But even as Apple’s sales mount Samsung wins as it is a key supplier of processors to Apple.

Investors obviously believe in Apple. Its shares have been over 700 dollars for the first time ever.

They have gained nearly 22 percent in the past three and a half months in the build-up to the launch of the iPhone 5.

The question now is how high will they go? Is this a bubble or a new launch pad?

The strong preorders could mean a huge holiday quarter for Apple as the iPhone – which is its marquee device – accounts for half of Apple’s revenue.

Apple will make initial deliveries of the iPhone 5 by September 21 in the United States and most of the major European markets, such as France, Germany and the United Kingdom. The phone then goes on sale on September 28 in 22 other countries.

Given the demand for the device so far and Apple’s aggressive rollout of it internationally, some analysts raised their sales and earnings estimates.

“The pace of this iPhone 5 roll-out is the fastest in the iPhone’s history and points to a big December quarter,” said Barclays analyst Ben Reitzes, who expects Apple to sell 45.21 million iPhones in the December quarter, up 22 percent from last year. Reitzes said his estimates “could still be conservative”.

Canaccord Genuity analyst Michael Walkley said he now expected Apple to ship 9 million to 10 million iPhone 5s from Friday to September 29, the last day of its fiscal 2012 year.