Back in August of 2018, Apple became the first American publicly traded company to reach a market cap of $1 trillion. About two years later, the company’s value reached $2 trillion.
Now, a leading Apple analyst says the company has a shot at hitting a $3 trillion market cap by the end of the year, thanks to the success of the latest iPhone lineup.
“Given the fundamental strength we are seeing for this supercycle, coupled by a further re-rating on the horizon, we believe Apple will hit $3 trillion in market cap by year-end,” analyst Daniel K. Ives of Wedbush Securities said in the note.
“Importantly, with our estimation that 350 million of 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Cook & Co,” Ives wrote. “We also believe there is an upward shift of ASPs for iPhones in this cycle as the iPhone Pro continues to be the predominant model sold globally, which bodes well for top-line numbers heading into the March and June quarters.”
Ever since the 2020 line of iPhones arrived on the market in October and November of last year, every indication has been that the iPhones are the most popular 5G smartphones in the world.
PCMag reported last week, citing Speedtest by Ookla and M Science data, that the iPhone 12 Pro Max is the most popular smartphone in 49 of the 50 states, with only Vermont and Washington, D.C. preferring the iPhone 12 Pro.
When Apple announced its fourth quarter earnings, it had pulled in record revenue of $100 billion, which included $65.6 billion in sales from iPhones.
Ives’ report also addressed the recent saga of Apple’s plans to produce an electric car, which has entailed numerous reports of talks commenced and broken off with different manufacturers, including Hyundai and Kia.
“We believe at this point its a matter of ‘when not if’ Apple will enter the EV race over the next few years,” the analyst wrote of those plans. “While the timing of an EV partnership remains a key focus of the Street and EV industry over the coming months we assign a 85%+ chance that Apple will announce an EV partnership/collaboration over the next 3 to 6 months. With U.S. auto stalwarts GM and Ford announcing very aggressive EV endeavors over the past month and a Biden-driven green tidal wave on the horizon, we believe now is the right time for Apple to dive into the deep end of the pool on the EV front.”
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.