“Bernstein analyst Toni Sacconaghi… who rates the stock at outperform with a $135 price target, says the iPhone business remains healthy,” Johanna Bennett reports for Barron’s. “But in a note out today, he explored the notion of Apple shifting to a subscription-based revenue model, offering its mobile devices under a bundled monthly service.”

“Rather than depending on sales of iPhone and tables, Sacconaghi sees the coming shifting to a subscription-based business model, with consumers paying a monthly fee for their devices and services,” Bennett reports. “He calls it ‘Apple-as-a–service’ and argues that it is ‘the recipe for a $1 trillion market cap.'”

Read more in the full article here.

“‘I love this piece,’ TheStreet‘s Jim Cramer said on CNBC’s ‘Squawk on the Street’ this morning. ‘I think it’s totally right,'” Rachel Graf reports for TheStreet.

“Sacconaghi discusses the opportunity to migrate to a subscription model, contending that users will adopt Apple’s Family Sharing plan,” Graf reports. “The plan grants up to six family members access to each other’s iTunes, iBooks, and App Store purchases.”

Read more in the full article here.

MacDailyNews Take: Cook has been spotlighting Apple’s services revenue for two conference calls now, calls Sacconaghi’s been on, so it’s nice to see him hopping on board. As for Apple’s market cap, we’ll keep an eye on it. Hey, at $517.07 billion, it’s more than halfway there! 😉

Why services may be the key to Apple’s comeback – May 11, 2016
Apple now makes more money from services than by selling Macs – May 2, 2016
Apple services now reach 124 million U.S. adults as user base expands – April 21, 2016
Apple’s services business saw massive 60% profit margins in 2015, more growth expected – April 20, 2016
75 percent of teens say their next phone will be an iPhone – April 13, 2016
Credit Suisse: Apple’s underappreciated services business could be growth engine – April 4, 2016
Apple highlights services in search of Wall Street’s love – January 26, 2016

[Thanks to MacDailyNews Readers “Fred Mertz” and “David E.” for the heads up.]