Apple Soars to New High

Updated from 1:21 p.m. EST

Apple (AAPL Quote) shares surged to a new high Wednesday, a day after their eye-popping runup on the rollout of the highly anticipated iPhone.

CEO Steve Jobs unveiled the iPod-based mobile phone during the MacWorld Conference in San Francisco Tuesday. "We're going to make some history together today," Jobs said as he took the stage.

Apple's stock was similarly working on new history. After rising 8% Tuesday, Apple tacked on nearly another 5% Wednesday, setting a new closing high of $97. Merrill Lynch boosted its price target on the stock to $113 from $102, and Bear Stearns took its target to $120 from $100.

The iPhone features a 3.5-inch touch screen, WiFi, Bluetooth and a 2-megapixel camera. It comes in a palm-sized shape at less than a half-inch thick. Cingular, the wireless unit of AT&T (T Quote), will be the first carrier to offer the phone.

Starting in June, the phone will be available with two storage sizes -- a 4-gigabyte model for $500 and an 8-gigabyte for $600, each with a two-year Cingular contract.

Cingular CEO Stan Sigman said he had so much confidence in the device that his company entered into the contractual agreement without ever seeing iPhone.

The phone runs on Apple's OS X software and includes the Safari Internet browser. Apple was reportedly in talks with Cisco (CSCO Quote) for use of the iPhone name, but late Wednesday, Cisco filed suit to prevent Apple from using the trademarked name.

Besides the touch screen, the iPhone has only one button, the home button that brings a user to a main screen. From there, the user touches the screen to listen to music, watch a video, email friends, surf the Web or make a phone call.

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