Apple could hit $3T market cap in 2022 on iPhone, AR glasses, analyst says
Apple's iPhone growth story is looking robust heading into 2022 despite supply chain issues, while new product categories like "Apple Glass" could help Apple break into the "metaverse," according to Wedbush.
The iPhone 13 and iPhone 13 Pro.
In a note to investors seen by AppleInsider, Wedbush lead analyst Daniel Ives writes that a number of factors -- including supply data and Apple Store checks -- are backing up his view that iPhone 13 demand is currently outstripping supply by about 10 million units.
However, while the focus has been on lingering supply chain issues and iPhone supply shortages, Ives says he is looking ahead to 2022, which he believes will be a key driver for Apple shares going forward.
For example, the analyst estimates that Apple could ship north of 40 million iPhone units during the busy holiday season despite the supply headwinds. Additionally, he believes iPhone growth both domestically and in the key market of China is trending "well ahead of Street in expectations."
Heading into 2022, Ives continues to believe that Apple will enjoy a robust "iPhone super cycle." Additionally, the introduction of a new AR headset or "Apple Glass" device could add at least $20 to Apple's sum-of-the-parts valuation. As such, the analyst calls Apple a "safety blanket tech name."
"We believe the fundamental story for Apple is strengthening into 2022 on the heels of the most robust Cupertino product cycle in the last decade," Ives writes. The bull/bear debate on Apple centers around how sustainable this product cycle is into 2022 and the valuation the stock deserves, although we believe the risk/reward is very favorable at current levels for this 'safety blanket' tech stalwart."
He also reiterated his belief that Apple could hit a $3 trillion market valuation in 2022, or sooner.
Ives maintains his 12-month Apple price target of $200, based on a sum-of-the-parts valuation using Wedbush's estimates. The valuation breaks down to an 18x multiple on Services at around $1.5 trillion, and a 7x multiple on Apple's hardware ecosystem at $2.1 trillion.
Read on AppleInsider
The iPhone 13 and iPhone 13 Pro.
In a note to investors seen by AppleInsider, Wedbush lead analyst Daniel Ives writes that a number of factors -- including supply data and Apple Store checks -- are backing up his view that iPhone 13 demand is currently outstripping supply by about 10 million units.
However, while the focus has been on lingering supply chain issues and iPhone supply shortages, Ives says he is looking ahead to 2022, which he believes will be a key driver for Apple shares going forward.
For example, the analyst estimates that Apple could ship north of 40 million iPhone units during the busy holiday season despite the supply headwinds. Additionally, he believes iPhone growth both domestically and in the key market of China is trending "well ahead of Street in expectations."
Heading into 2022, Ives continues to believe that Apple will enjoy a robust "iPhone super cycle." Additionally, the introduction of a new AR headset or "Apple Glass" device could add at least $20 to Apple's sum-of-the-parts valuation. As such, the analyst calls Apple a "safety blanket tech name."
"We believe the fundamental story for Apple is strengthening into 2022 on the heels of the most robust Cupertino product cycle in the last decade," Ives writes. The bull/bear debate on Apple centers around how sustainable this product cycle is into 2022 and the valuation the stock deserves, although we believe the risk/reward is very favorable at current levels for this 'safety blanket' tech stalwart."
He also reiterated his belief that Apple could hit a $3 trillion market valuation in 2022, or sooner.
Ives maintains his 12-month Apple price target of $200, based on a sum-of-the-parts valuation using Wedbush's estimates. The valuation breaks down to an 18x multiple on Services at around $1.5 trillion, and a 7x multiple on Apple's hardware ecosystem at $2.1 trillion.
Read on AppleInsider
Comments
I'm sure joking, but...
Apple is not too "big" or "powerful". Apple only has control over their own products, not the markets they compete in. And market valuation has nothing to do with that. That's just a reflection of what investors think the "company" is worth.
Both of the companies you mentioned were long time monopolies that were extremely anticompetitive and abused their control/sway over their respective markets.
The only thing I can see spinning out of Apple is probably applications (did that once; Claris) and probably media services. Otherwise every other part of the company is critical in the development of the products they make.
There is a whole host of made up reasons why people think the share price will go up or go down, but the essential prediction is that there will be higher demand for buying Apple shares then there is for selling shares or vice versa. The market cap will be whatever it will be. It's not actual money. (The dividend is a way to stabilize share price movement among institutional investors by have a kind of guaranteed return.)
Same thing with the story about "$275b" Apple investment in China story. It wasn't real, actual money. It was a deal "estimated to be worth more than $270b". They used the phrase "worth more than". That definitely is a term of art, and they are not talking about actual money. You see this a lot in news stories for startups, like "xxx company invested in yyy startup valued at $100b". It wasn't an actual $100b investment. The actual money invested would be $1b and when the startup goes public, that $1b will be worth $100b.
So, "worth" or market cap is a basically an a-physical number. It's not meaningful. It's not real money until it is sold, and if sellers snowball, the share price will fall in an exponential manner. People aren't thinking about market cap then either. They are only thinking about selling their shares to maintain their gain or their investment.