San Francisco: Riding on its growing services and wearables business, Apple may become the first company ever to touch the $2-trillion valuation mark in next four years, according to a top analyst. Apple was the first US company to cross the $1-trillion mark in 2018.
According to market research firm ‘Evercore ISI’, the Cupertino-based iPhone maker would also be the first firm to surpass $2 trillion, reports ‘Barron’s’.
In an investor note first spotted by ‘Barron’s’, famed analyst Amit Daryanani has listed what Apple needs to do to cross the $2-trillion threshold.
One of the keys to achieve this is Apple’s growing services and wearables businesses.
In the wearables business, the analyst expects growth to $60 billion owing to the expansion of AirPods and Apple Watch. The services business could grow to $100 billion in the next four years.
The analyst expects Apple to continue aggressively buying back stock. “Apple would reduce its share count by about 1 billion shares in the forecast period, from 4.6 billion at the end of fiscal 2019 to 3.6 billion in fiscal 2024. “At that share count, the market cap would hit $2 trillion if the stock price was just over $550,” Daryanani wrote.
As iPhones sale dip amid supply and demand uncertainties, services segment is following a different trend for Apple, with strong year-over-year growth of 17 per cent and setting a new all-time revenue record of $13.3 billion in the company’s March quarter results this year.
Apple now has over 515 million paid subscriptions across the services on its platform, up 125 million from a year ago.
Agencies