If recent news is to be believed, Apple currently possesses a market cap that is equal to $798 billion. However, according to some analysts, the technology giant has the required potential to overtake the $1 trillion mark very soon. Also, it is speculated that if Apple continues to increase its revenue by focusing both on operating and gross margins, the company can quickly reach the $1 trillion thresholds within the period of 12 to 18 months.
Moreover, RBC Capital Market’s has also raised the price target for Apple from $156 to $168. Also, it can be said that it has raised this price per share. Based on optimism, Apple can reach $12 plus earnings per share in the year 2019. By reaching that price, it would push Apple and its stocks into the share range of $192 to $195. As a result, this would push the market cap of the tech giant to $1 trillion.
According to Daryanani the current stock price of AAPL would create an attractive entry point for several investors who would benefit from the ability to return to revenue and EPS growth in the financial year of 2017. Moreover, the report has stated that Apple enjoys unique advantages over its competitors which would help it to maintain the lead over its rivals.
According to the report of RBC Capital’s market, AAPL’s real differentiation lies in its unique computing ecosystem called the iOS. This operating system provides the users with a scalable and seamless experience across several devices. On the other hand, many also believe that Apple is in dire need of a shift so that it can boost its stock price.
As per a recent UBS report, there is a question whether Apple as a hardware company is subjected to a fast commoditization or it should project its image as a consumer brand that is capable of driving sustainable growth at high rates. It also questioned whether the price of the stocks is likely to emerge from earnings.
On the flipside, there are positive signs in Apple’s customer loyalty metrics as the company gears to launch iPhone 8 and three new laptops at Apple’s annual Worldwide Developers Conference.