Apple Inc's (NASDAQ:AAPL) stock reached another record high at $685.50 on Thursday afternoon. Meanwhile, Brian White of Topeka Capital set his yearly target of the company's stock a notch higher at $1,111.

Apple's announcement of the iPhone 5 going on sale by Oct 25 resulted in its shares skyrocketing during Thursday's trading. On a side note, all U.S. stock rose following the Federal Reserve's announcement that it would continue its policy to put cash into the U.S. economy.

Apple Inc's (NASDAQ:AAPL) shares increased 69 percent this year and a remarkable 78 percent in the past 52 weeks. The company's shares surged past $400, $500 and $600 marks.

Meanwhile, Apple Inc's (NASDAQ:AAPL) real time stock quotes as of Oct 21, Monday, was at $508.9, up by 4.4 at 0.87 percent. Apple previously closed at 504.5, with a day's high of $509.26 and day's low of 503.9586; the company's 52 weeks' high was at $642.06 and 52 weeks' low at $385.10 (as published by NASDAQ OMX).

In a new report from Morgan Stanley, analysts predicted that Apple Inc's (NASDAQ:AAPL) third quarter of 2013 reached an inflection point for Apple.

Katy L. Huberty, the author of the report, placed a price target of $540 on Apple's stock and gave an "overweight" rating for the company.

According to Ms Huberty, Apple's release of the iOS 7 and the iPhone 5s were "meaningful innovation." The sales of the iPhone 5s will keep the company going up until the fourth quarter earnings' result.

Morgan Stanley is predicting that there will be 55 million iPhone sales in the fourth quarter - even if Apple decides to a marked down price of the iPhone 5c.

Ms Huberty is predicting that Apple Inc. is at a targeted landmark quarter for its fourth quarter earnings that will be announced on Oct 28. Ms Huberty also foresees a $37 billion revenue, an EPS of $8 and gross margin of 37 percent.

The fifth-generation iPad, Touch ID and other Apple products set for release on Oct 22 were factored in by Morgan Stanley in its prediction. Hence, it sees the possibility of high gross margins for Apple.

If, indeed, higher gross margin is achieved, Apple can possibly cut the price of the iPhone 5c to serve its original purpose of being the mid-range iPhone device.