Gene Munster: Why Apple deserves an historic trillion-dollar valuation

“Apple’s market cap crossed $800 billion for the first time two weeks ago. Not long ago, we predicted that Apple would be the world’s first trillion-dollar company,” Gene Munster writes for Barron’s. “We’ve had ups and downs since then, but now we’re closer than ever.”

“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


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