Why Apple shares can hit $400

Apple shares are once again flirting with a new all-time high, as Wall Street analysts continue to boost earnings expectations for the June quarter and beyond.

Why Apple shares can hit $400. Image: Apple logoEric J. Savitz for Barron’s:

Citigroup analyst Jim Suva weighed in on Tuesday with a report offering five reasons Apple shares can trade higher, as he repeated his Buy rating and lifted his price target on the stock to $400 from $310.

Here’s Suva’s list of Apple catalysts:

• The 5G iPhone launch

• Potential for market share gains: “We forecast that share gains from Huawei (given restrictions on using North American chip technology, which would result in its smartphone sales being halted) could result in incremental sales of ~$8 billion to Apple. Huawei targets the mid- to high-end market segment, and hence its customers would likely shift to brands in a similar segment,” Suva writes.

• Wearables growth

• Services: “Apple Services continues to accelerate, specifically with the App Store (about 30% of Services revenue), as engagement with apps continues to accelerate,” he writes.

MacDailyNews Take: COVID-19 might well turn out to be a blessing in disguise for Apple as it not only taught the company that, yes, many employees actually can effectively work from home, but it also focused the minds of analysts and investors on quality companies and, therefore, on Apple, in particular. As they searched for safe havens, the COVID-19 panic seems to have revealed the strength of Apple’s myriad business segments (finally!) to many analysts and investors.


  1. I anxious to find out if Apple’s move from Intel to ARM is going to make a positive impact on sales. Will ARM-based Apple laptops have greater processing power than comparable Intel-based models. That will be totally crazy if A-series processors could outperform Intel i7 or i9 processors. I know i9 processors are powerful, but i9 chips use a lot of power which eat up battery life. I wouldn’t care if Apple MacBooks aren’t ultra-powerful, but if they can extend battery life 50% with the same processing power, that would be good enough for me.

    Anyway, if Apple is able to make a superior laptop computer using an ARM processor, it could interest a lot of consumers and maybe, just maybe, greatly boost laptop sales to help Apple reach $400 a share. If using ARM processors actually saves Apple money then that’s just icing on the cake. Owning the chip design and the OS to run on would seem to give Apple a huge advantage over other companies’ laptops. Well, except for the fact that other companies will still sell much cheaper laptops than Apple is willing to sell. Could Apple ruin the Chromebook market with an ARM laptop? That would be nice to see.

    1. My Dell computer is a sad Windows machine using AutoCAD, Navis, and Revit it works but the UI is from hell even to this day it should be better than what it is, Apple can carve out a bigger piece if they refocus on software and hardware.

  2. I’m positive on the ARM option. I think it will enable Apple to compete more at the low end and create laptops that have exceptional battery life.
    There is nothing wrong with Apple still offering Intel Pro books for windows compatibility for several years.
    As always how Apple handle the software compatibility will be important.

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