Apple stocks have skyrocketed in recent quarters, making it the world's most valuable company with a market cap of $750 billion as of March this year. By the end of this year, the Cupertino-based tech titan will add another feather to its hat by becoming the world's first trillion dollar company, analysts predict.
RBC Capitol analysts are placing high hopes on Apple's upcoming iPhone 8 launch in September, which will drive the company's market cap to its next milestone. As per the analysts, the launch of the 10th anniversary edition iPhone will create a "super cycle" for the company.
And why not. Rumours are rife that the upcoming iPhone 8 will be the most advanced iPhone ever made in the ten years history since the first iPhone was launched. Wireless charging, AR and VR capabilities, revamped outlook with bezel-less OLED display, no home button, and facial recognition software are expected to make iPhone like never before.
It is known that these improvements will come at a price, which won't be favourable to many. But Apple won't disappoint its die-hard fans by overpricing its iPhone, so there will be iPhone 7S and iPhone 7S Plus to favour the majority. There will be three iPhones launching this year with an expected price to be around $900 to $1,100.
Analysts predict that the higher price of the new iPhones, rising services revenue, tighter cost control and strong stock buybacks will help Apple boost its revenue and place the company's per share profit at $12, the Economic Times reported.
"Apple has potential to achieve a $1 trillion dollar market cap and even surpass that over the next 12 to 18 months. We see upside occurring from multiple levers," Amit Daryanani, lead analyst on the note, said.
Apple posted its third quarter results, wherein it recorded "better-than-expected iPad and iPhone sales" contributing to the quarterly revenue of $45.4 billion. The company's net income was up to $8.72 billion, and iPhone sales were up 1.6 percent at 41.03 million during the quarter.
If the trend continues, Apple's path to becoming the world's first trillion dollar company doesn't seem too far.
