How Big Will the iPhone Be?

The new must-have smartphone may be a $10 billion businessand could send Apple shares even higher

Few stocks trade on emotion the way Apple Inc. does. Its rip-roaring initial public offering in 1980 created the template for modern tech mania, while making Steve Jobs a gazillionaire. When the company fell on hard times in the mid-1990s, no amount of good news could pierce the cloud of doom hanging over investors. Now, with the launch of the hugely hyped iPhone in a few weeks, momentum investors are driving Apple (AAPL) shares to unexplored territory. The stock has doubled in the past year, to 122. Apple's market cap recently topped $100 billion for the first time.

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