Bernstein: Apple could be first to $1 trillion market value, propelled by services revenue – Cramer agrees

“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! 😉

SEE ALSO:
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.]

6 Comments

  1. Market cap at $517.07 Billion, more than halfway to a Trillion

    MDN & Apple fans — glass half full and magically self-filling
    Trolls & market manipulators — glass half empty and draining fast

  2. I’m hoping they’re not going to start this nonsense again. It seems just a short while ago, Apple’s market cap was over $700 billion and now it’s nearly scraping $500 billion. None of these numbers have anything to do with the true potential value of Apple. Apple’s value is being based on a yo-yo and doesn’t seem to have any fixed value at all. What I really find annoying is merely because Warren Buffett was found to have had a stake in Apple suddenly the company outlook has changed in a week’s time and to me that’s just ridiculous. The company was good months ago, weeks ago and really not much changed recently except the opinions of analysts and investors.

    I was hoping the share price would stay low so Apple could buy back as many shares as possible for the set amount of money provided. I want to see more shares go away and be less of a burden for dividend payout.

    Now these stupid manipulators are going to try to give Apple shareholders hope again about Apple growth and it probably isn’t going to happen.

  3. Well good morning Mr. Sacconaghi !!!

    Maybe if you listen to what Tim Cook says evrery quarterly earnings conference call, instead of focusing on doubtful skeptical questioning, this would have been obvious to you all this time you’re knocking and doubting Apple.

    ‘Bout time you got it, now do you have amnesia?

  4. Say what…? “Hardware as a service”? Or service via hardware?? How would this work…two year contracts? Apple JUMP to upgrade after a year? As in going back to the carrier models, just eliminating the carriers…???

    I need this more ‘splained to me…

  5. Mac sales have fallen off a cliff. Ditto for education.

    Is Apple so busy chasing rainbows they can’t keep their existing users happy?

    Are we deserting the Mac, or is Apple? And what does it mean for Apple if they lose their evangelist users to Wintel?

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