Morgan Stanley sees Apple’s target market growing to $3.4 trillion

“In a major report issued Monday that finds potential for growth in nearly every aspect of Apple’s operations, Morgan Stanley’s Katy Huberty estimates that the company’s total addressable market — the business Apple might capture if it had no competitors — could grow from $800 billion today to $3.4 trillion (repeat, trillion) by 2020,” Philip Elmer-DeWitt reports for Fortune.

“Huberty estimates that Apple currently touches one-third of its users’ time and three-quarters of their free time,” P.E.D. reports. “Using U.S. Department of Labor statistics about how Americans spend their time, she examines three new product categories with which Apple could dramatically expand the reach of its ecosystem — an ecosystem whose profit margins and stickiness are already the envy of the tech world: (1) Apple Watch; (2) Apple TV; (3) Apple Car.”

Read more in the full article here.

11 Comments

  1. And in the next 5 years, after coming up with the Watch, if they happen to enter OTHER markets, that could be a low estimate. A trillion dollar company? Why not. And we have not even seen the impact of the Car yet. I have a hard time imagining Apple going for 5 more years without coming out with a few more market disrupting products in the interim. If any other companies want to be serious competitors, they need to realize the power they are up against is not merely a phone company, it is a PRODUCT DESIGN company. Elegant high quality design that does not settle for second best ever.

    1. I agree with your description of Apple being a ‘product design’ company. I’m glad to see someone gets Apple, because the majority of “analysts” and media types don’t.

      1. For an example of a company that does NOT ‘get’ it, check out the new Sony glasses. A product surely designed by engineers and looks like total CRAP. Sony has not paid attention to the reason for Apple’s success at all. Amazing that so much money is risked by companies without even understanding this. I would welcome another great product design company, but I just can’t think of any at the moment. Is there ANYONE else out there designing great products based on design FIRST and tech second? Consumers have ALWAYS pursued design, just look at high dollar cars, but how rarely does GM, or Ford produce the same hot cars? They surely could have, so why not? Apple is about to teach them all yet another lesson in this, and if they think they will not pay the tuition for this le$$on, they are dreaming.

    2. In my estimation. .. Apple releases a major dustripting product every 4 years…..
      But that was the past…..
      😉
      I see major stuff happening in the next 5 years.. In many fronts !

    1. After playing “Debbie Downer” for so long, it is refreshing to see Katy Huberty has finally come around to seeing Apple’s business potential. Took long enough, though. It was painful to watch Katy and other analyst get bruised so badly for so long with their poor calls on Apple. Maybe Philip Elmer Dewitt’s scorecard helped. Agreed: take the opinions of professional analysts with a healthy dose of skepticism. Those who truly know Apple can pretty much think for themselves, see for themselves, and call it for themselves.

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