Apple shares climb to three-year high

Shares of Apple Computer Inc. rose six per cent last week to their highest price in more than three years on the heaviest volume in nine months, adding to gains already posted this year amid the success of the company's iPod and iPod mini digital music players.

The stock also rose amid persistent takeover speculation, with the purported suitor this time being consumer electronics giant Sony Corp, analysts said. Since at least the mid-1990s, Apple has been posited as a takeover target, with suggested bidders ranging from Sony to Sun Microsystems Inc.

Last month, Apple said it had received 100,000 pre-orders for the iPod mini, which is about the length and width of a business card, weighs 102g, holds 1,000 songs and sells for $249. The device went on sale on February 20.

The iPod mini, which comes in five different colours, has been particularly popular with women, teenagers and fitness-minded people because of its small size and multihued offerings. It has reportedly been selling out quickly in some retail locations.

"The word of mouth on this product is very strong," said Tim Bajarin, an analyst at Creative Strategies, who noted that he has so far spoken to 10 Apple dealers about the reaction to the iPod mini. "Customers are literally coming in (to the store) and they know exactly what colour they want."