Apple Makes All-Time High on New Product Optimism

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Aug. 20 (Bloomberg) -- Apple’s stock soared to an all-time high, surpassing 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. Tom Giles reports on “In The Loop.” (Source: Bloomberg)

Valuation just yet.

-- evaluation just yet.

What has changed?

Great question.

A lot of concern back then that, what is apple going to do now?

Steve jobs had passed away.

The rains had been taken over by tim cook and the question was, what is the next eight game changing product?

Since then, tim cook has been really clear on the matter.

He said we have got a lot of exciting new products coming down the pike.

One of them is wearables.

At the same time, he is refreshing the iphone six line.

There has been so much money in research and development and there is a feeling at some point it has got to pay off here at investors can get antsy.

They want something in the here and now.

This is a company that takes two or three years in terms of its cycle to come out with something new and something big.

It takes time.

Apple is a perfection company and that is steve jobs up -- jobs'legacy.

They are trying to make inroads in a tv product.

Those constant providers, the tv, the channels, etc., they do not want to give up the content easily.

You have not seen as much or heard as much on a tv product.

We do not think that is the next thing coming down the pike.

We think it is an wearables.

Morgan stanley put out an estimate they could sell 60 million in the first year, $9 billion in added revenue.

That is a lot of money even for apple.

You think iwatch?

Exactly.

Help you stay fit, look at your apps, listen to music.

What are some of the challenges for the company?

Carl icahn saying yesterday he has not told a share of apple.

You have got to look at china.

They have made good product -- good progress from china.

But you're seeing china make it a little harder for some foreign companies to do well in that country.

They are cutting back on subsidies.

That means there will be less of it.

It is expensive to buy an iphone , particularly if you do not have a subsidy.

That is something to really watch.

The other wild card is samsung.

They will not give out -- give up without a fight.

This text has been automatically generated. It may not be 100% accurate.

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