Marketing Updater

Apple soon to hit the $2 trillion market cap?

Apple Inc. is on its way to becoming a $2 trillion company. It currently has a market valuation at $1.6
trillion dollars followed by other giants that are Amazon and Apple which are currently more than $1.5
trillion in worth.

According to Wall Street’s technology analysts, these companies can touch the $2
trillion figure if they manage to boost up their current pace. Even during the COVID crisis, these
market heavyweights managed to lift NASDAQ to more than 10,000-level in June.

Factors contributing to Apple’s growth

Apple shares have already shown an increase of around 34 per cent since the start of the year, let us
look at some factors which will definitely trigger Apple’s growth owing to its higher market
valuation.

The first being Apple’s services and wearables.According to CultofMac analyst, Amit Daryanani, growth of about $60 billion in the wearable business is expected, thanks to AirPods and Apple Watch who have nearly captured the entire market. The service business is also expected to grow by $100 billion.

The second is a multi-year 5G market opportunity. 5G may prove to be a real detrimental in the success of reaching the $2 trillion figure. As per Daniel Ives, MD of Wedbush securities, Apple is set to launch four models for Apple 12, with a mix of 4G/5G which could be as low as $1000, with an additional component of 5G.

Apart from these factors, the Indian market may also help Apple in scaling up his number. Since in
late June, the government has banned 59 Chinese apps, owing to maintain the security of the nation
and public order. For Apple, India has always been a tough nut to crack, but because of the recent
events, India is sidelining Chinese products, which is giving Apple products an edge with incremental
success.

Apart from India, it is been also expected to have a 5% year-over-year increase in the sale of
iPhones globally. UBS has also raised his price target on Apple from $280 to $355, citing optimism.
This makes UBS, the second biggest Apple bull after DA Davidson who hiked his price target to $375.
Despite the optimism seen among many Analysts, some are still sceptic, if Apple shares will be able
to climb up the ladder and reach the magic number that is $461.89. It was been observed that on
Tuesday, Apple’s price dropped by 6%. But Apple has proved his doubters many times wrong.
Whether Apple can break through these targets is just a question of time.