Top analyst Daniel Ives has precited apple to become the first trillion dollar company by September 2018. Apple’s current total stock sits at $868.1 billion and it could reach trillion dollar business with he launch of iPhone 8, 8 Plus and X.
Apple is planning to ship 258 million Iphone units in 2018 when compared to 231 million in 2015. Apple’s shares are predicted to trade between $210 and $230 and with the higher end of this range, it would represent nearly 35 percent upside from its last week’s closing price.
On top there apple has 350 million iphone users with handsets aging more than 2 years and with the upgrade option, we can expect a huge increase in sales.
“It all comes down to the success and elongated demand trajectory of iPhone X over the coming quarters to determine if Apple finally ends up joining the elusive trillion dollar market cap club in 2018, in our opinion,” Ives said in a note.
“To this point, the first stage of the iPhone X launch is off to a great start in what will be a crucial prove me period for Cook and Apple over the next year.”– he added
Iphone X is expected to come with a starting price of $999 and this will be a key metric for investors — to rise from $643 in fiscal year 2017 to $746 in fiscal year 2018.
GBH Insights’ customer checks indicate that more than seventy eight percent of Apple customers are going with the higher priced $1,149 version of the iPhone X, which offers a larger storage when compared to other Iphone model’s.
Analsyst also said Iphone will have its best year in china in 2018 and the iPhone X could bring a “renaissance” in the world’s largest smartphone market, according to Ives.
“Representing the biggest revenue driver behind the iPhone, we believe much of the incremental services growth over the next few years will come from China as the ‘halo effect’ of Apple will fully manifest itself among iPhone users, especially with the iPhone X upgrade cycle kicking into full gear for FY18 in our opinion,” — he added
With growing install base , it gives a great opportunity for to enlarge its service business like Apple Music. The serivce business alone has $8.8 billion as revenue in septmeber quater and the company is looking achive $50 billion for a fiscal year ending September 2020.