Apple shares hit a new record price on speculation that the company will soon release a smaller version of its iPhone.

Speculation launched yesterday when a JP Morgan analyst made claims Apple would launch an iPhone nano later this year. The analyst’s claims were later rebuffed - by JP Morgan.

However, this wasn't enough to quell investor optimism. Though official figures haven't yet been released it has been estimated that Apple and exclusive network partner, AT&T, may have sold over a million iPhones in the days since launch.

Some analysts believe Apple needs to work hard to maintain the momentum on the product, particularly in the fast-moving, upgrade-hungry mobile phone market.

Analysts at Gartner say a lower-priced device is needed within nine months to keep the momentum going.

"The iPhone had a great first weekend, but now the question is what is its staying power," said Bill Hughes, an analyst with In-Stat told CNN. "Its staying power is due to how many features they get right."

Apple is also expected to introduce new features and to develop an iPhone model that integrates 3G support for the European market, reports claim.

Apple stock presently stands at $132.35 per share, and is currently rising on the pre-market, where it's valued at $132.60.