If Amazon.com, Inc.(NASDAQ:AMZN) expected to put a scare into Apple Inc. (NASDAQ: AAPL) investors with its Kindle Fires, it must have been disappointed.
Apple shares hit a new high of Friday, bursting all previous records, and unfazed by the competition that the new Kindle Fires are expected to offer to its iPads.
Shares of the iPhone maker closed up $4.17 or 0.62 percent at $680.44, off its intra-day highs of $682.48.
The market cap of the company, which has become the most valuable firm in the United States now, stood at $637.85 billion.
Apple is set to unwrap its new iPhone - that has been dubbed iPhone 5 by the media and analysts - on September 12, in hat is being described as a big bang launch.
Later in the year it will also be releasing its new iPad Mini, a smaller and cheaper version of its current tablet PC, to cater to a different segment that is cost conscious.
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The Apple stock has been on an uptrend since August, after suffering from a brief slump in April when investors started to worry whether phone companies would shy away from offering the subsidies they pay to sell the iPhones at a lesser price.
Apple sales also showed a dip as prospective users decided to hold on and wait for the new iPhone rather than buy the existing versions.
The Wall Street Journal has also said that the company is in talks to build a custom-radio service similar to that of Pandora Media to make further inroads into the area of online music.
While analysts are expecting Amazon's Kindle Fires to pose stiff competition to Apple products on cost and features, it is anybody's guess whether loyal followers of Apple would be easily swayed by them.