“Investors are finally giving the company credit for its defensible, recurring business of selling high margin hardware and software, layering in services revenue growing in the high-teens,” Munster writes. “While not a traditional recurring business with quarter-to-quarter predictability, 600 million+ iPhone customers with 96%+ satisfaction rates generate predicable revenues over longer periods of time.”
“Year-to-date, shares of AAPL are up 32.8% vs the Nasdaq at 13.8%, as of this writing,” Munster writes. “A key reason for the stock’s outperformance is mounting expectations for the iPhone X coming this fall, which should reaccelerate growth in the iPhone business.”
Read more in the full article here.
MacDailyNews Take: Looking further out, the big question is will the market punish AAPL the year after the “iPhone X” (iPhone 8) supercycle as it did after the iPhone 6/Plus supercycle and, if so, how badly?
Analyst sees Apple’s market value at $1 trillion in a year – May 8, 2017
Apple’s path to first-ever $1 trillion market cap – March 7, 2017
Apple on track to become first ever $1 trillion company – February 17, 2017
Bernstein: Apple could be first to $1 trillion market value, propelled by services revenue – Cramer agrees – May 18, 2016
Apple would be worth $1 trillion if market valued it like Steve Jobs-run company – January 4, 2016