Apple has clear path to $3 trillion valuation with 5G, health

Posted:
in General Discussion edited August 2020
Apple recently hit a $2 trillion market capitalization milestone, and Loup Ventures' Gene Munster said the company has a "clear path" to $3 trillion.

Credit: Laurenz Heymann, Unsplash
Credit: Laurenz Heymann, Unsplash


The Cupertino tech giant hit a $2 trillion valuation on Wednesday, with shares briefly hitting $467.77 in intra-day trading. Apple's stock price has rallied more than 55% since the beginning of 2020.

In a research note on Thursday, Munster said the milestone was "an opportunity for us to look back and look forward." Specifically, toward a $3 trillion market valuation for Apple.

"Three years ago, it was hard for many to imagine that Apple would reach a $1 trillion market cap. Two years ago, it was equally difficult for some to imagine $2 trillion. While we understand that, for some investors, $3 trillion is even harder to envision, we believe there is a clear path to that next milestone," Munster wrote.

The analyst says that Apple's path to $3 trillion starts with the fact that the world has changed. He adds that the company is well-positioned to take advantage of future advancements in technology, including wellness, autonomous systems, and augmented reality (AR).

Apple's strategy, Munster contends, has been to rely on "golden goose" product lines that change every few years. He also said that Apple is rarely the first to market, giving the company time to learn from rivals and refine its own offerings.

Munster expects Apple's entry into the 5G marketplace -- slated to occur in the fall of 2020 with the "iPhone 12" -- could drive a three-year device upgrade cycle and open up new mobile use cases.

Both AR and health technology will grow in importance, and Munster said that Apple is ready to leverage its developments in the area. AR systems could become "the next major computing platform," and Loup Ventures expects "Apple Glass" to launch sometime around 2022.

Munster said health technology will become much more "digital, personal, and preventative." Wearables will be used to collect data, AI will be used to analyze it, and consumer technology will be the interface for consumers.

Amid rumors of a combined "Apple One" services subscription, Munster also forecasts that Apple will eventually introduce devices into a bundle that includes "hardware, software, and services -- something only Apple can do."

In the services sector, Munster also expects Apple Pay and Apple's financial services to grow, and said that original content platforms like Apple TV+ will continue to garner a larger share of media consumption.

And while Munster said it's unclear how Apple will drive or take advantage of developments in autonomous systems, he said Loup Ventures expects the company to make a play in the area.

Although Munster admits that Apple is not perfect, he expects the company to build its foundation for the next milestone like the past two: brick by brick.

"Building and maintaining a culture of innovation and excellence has long been an area in which Apple stands head and shoulders above the other tech giants. More recently, that culture has been sustained by Tim Cook. The roots, of course, were planted by Steve Jobs. At its most basic level, the $2 trillion milestone is a recognition of what he started," he concluded.

Comments

  • Reply 1 of 13
    SpamSandwichSpamSandwich Posts: 33,407member
    Gene Munster isn’t a credible analyst. Having said that, I think there really is a path to $3 trillion for Apple.
    lolliverBeats
  • Reply 2 of 13
    tundraboytundraboy Posts: 1,884member
    I'm excited about their patent for eyeglass lenses that with the proper app can be adjusted by the user to correct his or her vision.  My understanding is the app is interactive and will conduct the vision test that normally is done by an optometrist.  If they are able to bring this to market, that would be huge.  I've seen published numbers saying more than 60% of the US population wear prescription glasses, the rest of the developed world probably has similar numbers.  That market could mean unit sales bigger than the iPhone's especially if Apple's patent gives it  a lock on the technology.
    aderutterBeats
  • Reply 3 of 13
    Did the original report include a date for when this might happen?  Without a date, this is a prediction a 10-year-old could make.  
    lollivermuthuk_vanalingam
  • Reply 4 of 13
    Katy Huberty, Eric Ross, Daniel Ives, and Gene Munster: The Four Horseman of Apple research and forecasting,
  • Reply 5 of 13
    SpamSandwichSpamSandwich Posts: 33,407member
    Did the original report include a date for when this might happen?  Without a date, this is a prediction a 10-year-old could make.  
    Just like Gene’s magical Apple Television he touted for YEARS.
    lolliverBeatsmuthuk_vanalingamrandominternetperson
  • Reply 6 of 13
    Yes without a date it’s an easy to write prediction.

    That said, every year The number of Apple product users grows, the number of services grows, devices get upgraded, new products arrive...

    AS Macs have big potential, AppleWatch has even more potential especially with oximeter in a covid world. 

    Glasses we’ll have to see what transpires but it’s a very lucrative market when glasses frames in high street optician shops can be priced in excess of £1000 without lenses.
  • Reply 7 of 13
    Where's everyone that screamed Tim Cook is a terrible CEO at?
    lolliverBeats
  • Reply 8 of 13
    XedXed Posts: 2,519member
    NinjaMan said:
    Where's everyone that screamed Tim Cook is a terrible CEO at?
    There used to be one forum member here who would praise Cook when the stock went up and then call for his head when the stock went down. It didn't matter what was going on with the stock market as a whole. I don't think there's a bipolar medication that can deal with that kind of trigger.
    lollivermuthuk_vanalingam
  • Reply 9 of 13
    I'd be a first adopter of glasses if they would use facial recognition so I could remember names.

    Well, that, and having my dashboard and flying analytics on there when I drive or fly.  And an thermometer so I can avoid people with higher temperatures.  And a reminder to get my wife a gift, and give me directions to the closest store with the best prices... and AR Facetime calls... and a rearview camera, so I could see people trying to jumpscare me...
    Beats
  • Reply 10 of 13
    BeatsBeats Posts: 3,073member
    Things I'd like to see:

    1. Their foldable device. Not a phone

    2. Soundbar, more HomePods

    3. Smarter Siri that can make Apple money

    4. A real gaming push


    Xed said:
    NinjaMan said:
    Where's everyone that screamed Tim Cook is a terrible CEO at?
    There used to be one forum member here who would praise Cook when the stock went up and then call for his head when the stock went down. It didn't matter what was going on with the stock market as a whole. I don't think there's a bipolar medication that can deal with that kind of trigger.

    Is that the guy who used to say (and I quote):
    "Tim Cook put all his eggs in the China basket and now Timmy has egg all over his face."

    L O L

    edited August 2020
  • Reply 11 of 13
    Beats said:
    Things I'd like to see:

    1. Their foldable device. Not a phone

    2. Soundbar, more HomePods

    3. Smarter Siri that can make Apple money

    4. A real gaming push


    Xed said:
    NinjaMan said:
    Where's everyone that screamed Tim Cook is a terrible CEO at?
    There used to be one forum member here who would praise Cook when the stock went up and then call for his head when the stock went down. It didn't matter what was going on with the stock market as a whole. I don't think there's a bipolar medication that can deal with that kind of trigger.

    Is that the guy who used to say (and I quote):
    "Tim Cook put all his eggs in the China basket and now Timmy has egg all over his face."

    L O L

    A smarter Siri would be very nice.  I’m rather shocked at how slow the progress has been in these digital assistants from every company not just Apple. The advancements over the last few years are barely noticeable.  I keep hearing about AI this and AI that but where the heck is it for the average person to use.  
  • Reply 12 of 13
    Rayz2016Rayz2016 Posts: 6,957member
    Did the original report include a date for when this might happen?  Without a date, this is a prediction a 10-year-old could make.  
    Analysts: regurgitating forum blog comments since 2010 …
    randominternetperson
  • Reply 13 of 13
    Rayz2016Rayz2016 Posts: 6,957member

    Xed said:
    NinjaMan said:
    Where's everyone that screamed Tim Cook is a terrible CEO at?
    There used to be one forum member here who would praise Cook when the stock went up and then call for his head when the stock went down. It didn't matter what was going on with the stock market as a whole. I don't think there's a bipolar medication that can deal with that kind of trigger.
    Ah, the entertaining Sog35, the epitome of short-term thinking. 

    Some of the greatest comedy riffs I’ve ever seen have been written in reply to his comments. 
    muthuk_vanalingam
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