How the iPhone can drive Apple to a $1 trillion market cap

“While there has been a lot of speculation as to where Apple’s next wave of growth is likely to come from – rumored product lines include Apple branded electric cars and TV sets – we don’t presently see another product or market that will have the ability to move the needle for the company the way that the iPhone can,” Trefis writes for Forbes.

“Case in point: if Apple is able to maintain iPhone gross margins and ASPs at present levels – versus a long-term decline according to our valuation model – it could add about $180 billion to the company’s valuation,” Trefis writes. “For perspective, that’s more than the market cap of the big three U.S. automobile companies combined.”

“If Apple succeeds in maintaining pricing and margins at current levels, it could result in a 25% upside to our price estimate, resulting in a $160 per share valuation. This would imply a market cap of about $930 billion,” Trefis writes. “If the company is able to both maintain pricing and margins at current levels while expanding shipments, this could result in a market cap of more than $1 trillion.”

Much more in the full article here.

MacDailyNews Take: As we wrote a week ago:

$1 trillion is just a mile marker on the way to the next trillion and beyond.

Related article:
Here’s how Apple gets to $1 trillion valuation in just 12 months – March 23, 2015

3 Comments

  1. I see a market, SEARCH. Create a competitor for GOOGLE. You have to hardware collecting the data,

    Make it truly relevant, non-biased results, UNLIKE Google, who is favoring Liberals, Democrats and Progressive Causes.

    Sell advertising, Who cares, everyone does. That’s all Google has, sell “Data”, there is plenty of data that is not biased, does not have to invade privacy, and useful, Like plotting FLU breakouts based on where search is coming from. Sell simple knowledge.

    WATCH GOOG stock PLUMMET.

    Watch ANDROID Plummet.

    Watch Samsung Plummet. Throw in every other search company.

    Why not launch satellites, and have your own Cellphone and ISP service. Get the monthly fees. It all seems related. I’d rather buy from Apple than Comcast, Who also leans progressive.

    And although some think Apple leans liberal, they’d do themselves a favor to be billed as truly non-biased.

    Apple has the bucks.

    1. Too many caps…

      I agree that Apple has the potential to do search better than Google. Of course, Yahoo and Bing are still struggling. And there is that risk of turning the customer into your product.

      I wonder if you really want non-biased. The tone of your post suggests otherwise.

  2. I’m sure Apple can make more revenue and profits, but are there really enough investors interested in owning Apple to drive it up to those lofty price targets. There seem to be an awful lot of people out there telling investors not to buy Apple because most of the easy gains are gone. It just seems as though there are a lot of anti-Apple factions out there always looking for ways to tear Apple down and actively scare investors away from purchasing Apple stock for any number of reasons.

    And then there’s still that stupid “Law of large numbers” theory that idiots believe in thinking that there’s some set upper limit to a company’s value. Every new product is going to have to work out nearly perfectly for Apple to get it to the $1T mark. People are constantly looking for flaws in Apple to keep the share price as low as possible.

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