Apple expected to become world's first trillion-dollar company by 2014

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Comments

  • gtrgtr Posts: 3,165member
    This is an interesting prediction.



    I look forward to this, their future merger with Weyland-Yutani, and their company spin-off into Apple Communications, Apple Entertainment, Apple Vehicle Division, MacBook Airways, Apple Employment (otherwise known as the 'Job's Jobs Foundation'), Mac-To-The-Future Industrial Computers, Apple Robotic and Cybernetic Division, and Apple Terra-forming.



    May we all live long, prosper, use the 4S, think differently, and be excellent to each other.
  • haarhaar Posts: 503member
    Quote:
    Originally Posted by scotty321 View Post


    Totally agree. People just don't understand this fact yet. As one great example, take a look at Apple's newest commercial "iCloud". I sat 3 non-technical people in a room, and not one of them could tell me WTF was going on in that ad. The ad doesn't even have a voiceover to explain what you're watching onscreen. Steve Jobs NEVER would have approved that ad, but now that Phil Schiller is running the marketing show, there's nobody to keep his bad instincts in check anymore. Same thing with all the other executives... Ron Johnson is gone, and the worst retail guy in UK history is now running Apple Retail?! The Titanic is beginning to sink, the cracks are already showing, yet nobody is paying attention.



    it is one of those weird ads to keep you " in the fold" as opposed to " getting you in the fold"...

    or " now that were married, let me tell you about..."
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by GTR View Post


    This is an interesting prediction.



    I look forward to this, their future merger with Weyland-Yutani, and their company spin-off into Apple Communications, Apple Entertainment, Apple Vehicle Division, MacBook Airways, Apple Employment (otherwise known as the 'Job's Jobs Foundation'), Mac-To-The-Future Industrial Computers, Apple Robotic and Cybernetic Division, and Apple Terra-forming.



    May we all live long, prosper, use the 4S, think differently, and be excellent to each other.



    Can I play, too????



    I predict that Apple will merge with France.
  • macxpressmacxpress Posts: 1,698member
    Quote:
    Originally Posted by anantksundaram View Post


    Splits have nothing to with the aggregate market value.



    You have $20 in your wallet whether you have one $20 bill or two $10 bills or four $5 bills twenty $1 bills.



    Name a company that didn't have its value go down after it was split into different divisions...



    It will either start to do stupid things, and/or be forced to do things it doesn't want to do.
  • lmaclmac Posts: 56member
    Apple will continue on its momentum for a while just like it did the last time Steve departed and it was highly profitable (during the Sculley era). However, these analysts seem to have no vision beyond extending a growth curve out beyond the present along the same line. Apple stock is in a bubble. Be sure to cash out before it pops!
  • sessamoidsessamoid Posts: 175member
    Quote:
    Originally Posted by macxpress View Post


    Name a company that didn't have its value go down after it was split into different divisions...



    It will either start to do stupid things, and/or be forced to do things it doesn't want to do.



    Apple has been split into divisions since forever.
  • magic_almagic_al Posts: 325member
    The idea that Apple's business can't be successful without Steve Jobs is ridiculous. Every other successful company has something in common with Apple — they don't have Steve Jobs either.
  • macxpressmacxpress Posts: 1,698member
    Quote:
    Originally Posted by sessamoid View Post


    Apple has been split into divisions since forever.



    The only two real divisions they have are Corporate and Retail. We'll see what happens when Apple Corporate gets split.
  • macxpressmacxpress Posts: 1,698member
    Quote:
    Originally Posted by Magic_Al View Post


    The idea that Apple's business can't be successful without Steve Jobs is ridiculous. Every other successful company has something in common with Apple ? they don't have Steve Jobs either.



    Agreed!
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by macxpress View Post


    Name a company that didn't have its value go down after it was split into different divisions...



    It's happened plenty of times. Remember back in the 80's and 90's when corporate raiders were buying companies and then splitting them up? The fact is that often a conglomerate is worth less than the sum of its parts.



    Of course, if the 'parts' logically fit together (as Apple's do), then the conglomerate could be worth more than the sum of its parts. But that's not guaranteed.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by anantksundaram View Post


    $1000 per share would put the market cap at $930B, not a trillion.



    I think I calculated it will need to be $1074 per share, based on the current number of outstanding shares, to reach that level.



    Quote:
    Originally Posted by anantksundaram View Post


    Splits have nothing to with the aggregate market value.



    You have $20 in your wallet whether you have one $20 bill or two $10 bills or four $5 bills twenty $1 bills.



    Quote:
    Originally Posted by sessamoid View Post


    Apple has been split into divisions since forever.



    I think he means they will be forced to split the company into two separate companies. But I don't see why that would happen.





    Quote:
    Originally Posted by hill60 View Post


    PetroChina, when it launched on the Shanghai stock exchange was the first Trillion dollar company in 2007.



    http://www.guardian.co.uk/business/2007/nov/06/china



    They really should qualify it was sustainable.





    Quote:
    Originally Posted by popnfresh View Post


    It's not going to happen. If Steve Jobs were still alive I'd say it was possible. But Apple has lost its visionary leader. Already, Apple has started to veer away from Steve's way of doing things in little ways. Over time that process will accelerate and Apple will become just another corporate monster. Apple's cachet, so meticulously cultivated by Jobs, will evaporate and sales will stagnate. The inevitable decline has already begun. Apple may be growing for now, but it's just momentum at this point. The driving force is gone.



    You're so right¡ Steve died on October 5th and the iPhone 4S was launched on October 14th. If he had been alive there is no way they would have used the same look and design as the iPhone 4. What was Apple thinking?
  • Quote:
    Originally Posted by macxpress View Post


    Name a company that didn't have its value go down after it was split into different divisions...








    At&T?



    That is just a guess, BTW.
  • anantksundaramanantksundaram Posts: 16,776member
    Quote:
    Originally Posted by macxpress View Post


    Name a company that didn't have its value go down after it was split into different divisions...



    It will either start to do stupid things, and/or be forced to do things it doesn't want to do.



    I thought you were referring to stock splits. I see you're referring to the market value impact of splitting up a company.



    Actually, a preponderance of the empirical evidence there suggests that in enhances value, by getting rid of a conglomerate discount, aligning incentives better, and the simple fact that the ability to trade on a whole portfolio of assets is generally worth less than the ability to trade on individual assets in the portfolio.



    There is nothing inherent with splitting up a company that will make it start to do "stupid things" or "things it doesn't want to do." Why do you claim that?
  • anantksundaramanantksundaram Posts: 16,776member
    Quote:
    Originally Posted by sessamoid View Post


    Apple has been split into divisions since forever.



    I think he means splitting up into separate publicly traded companies.
  • Quote:
    Originally Posted by lmac View Post


    Apple will continue on its momentum for a while just like it did the last time Steve departed and it was highly profitable (during the Sculley era). However, these analysts seem to have no vision beyond extending a growth curve out beyond the present along the same line. Apple stock is in a bubble. Be sure to cash out before it pops!



    I'm not sure that with its current P/E it really is a bubble. Then agsain, I'm not sure that the growth rate will continue much longer.



    It iwll be interesting to see what happens over the next 3 to 5 years. Anything is possible, but I would not bet against Apple at this point. They are doing remarkably well. And considering how few products they have, in so few categories, they could easily get much bigger, fast.
  • anantksundaramanantksundaram Posts: 16,776member
    Quote:
    Originally Posted by SolipsismX View Post


    I think I calculated it will need to be $1074 per share, based on the current number of outstanding shares, to reach that level.



    Correct. Interesting to see how "$70B" had become a "rounding error" (i.e., $930B can be rounded up to $1T) in much of the market commentary today!



    Quote:
    Originally Posted by SolipsismX View Post


    I think he means they will be forced to split the company into two separate companies. But I don't see why that would happen.



    I caught that. See above.
  • Quote:
    Originally Posted by Magic_Al View Post


    The idea that Apple's business can't be successful without Steve Jobs is ridiculous.



    Just look at the Grateful Dead without Jerry. Furthur is just as good!
  • soundvisionsoundvision Posts: 147member
    Quote:
    Originally Posted by I am a Zither Zather Zuzz View Post


    Just look at the Grateful Dead without Jerry. Furthur is just as good!



    Yet they still manage to sell out a majority of their shows, including the up coming tour.



    With that aside, are you really comparing a multibillion dollar company with a band?
  • pokepoke Posts: 506member
    Quote:
    Originally Posted by lmac View Post


    Apple will continue on its momentum for a while just like it did the last time Steve departed and it was highly profitable (during the Sculley era). However, these analysts seem to have no vision beyond extending a growth curve out beyond the present along the same line. Apple stock is in a bubble. Be sure to cash out before it pops!



    The stock is not in a bubble. P/E is low, especially when you exclude cash. Maybe earnings growth won't continue much longer at this pace but it shows no signs of slowing down this year.
  • granmastakgranmastak Posts: 298member
    Quote:
    Originally Posted by macxpress View Post


    I highly doubt this will happen. Some kind of split in the company will happen before this. We don't like when companies get this big.



    Sounds like Apple would become too big to fail?
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