- Advertisment -

Apple Projected to Hit $2 trillion market cap in the next four years

In 2018, Apple’s market capitalization reached US$1 trillion and became the world’s most valuable company. And now the company’s market capitalization is sitting at $1.44 trillion, so the question is, will Apple’s valuation reach $2 trillion soon in the future?

Evercore ISI analyst, Amit Daryanani believes this is in fact possible. In a recent paper to investors, he noted that the market share of Apple Services (such as iCloud storage) and Apple’s Wearable Business (including Apple Watch and AirPods) will continue to grow, which could boost its market valuation to $2 trillion within four years.

- Advertisement -

Daryanani predicts that Apple’s wearables business will expand to $60 billion, and he says that the Service business would worth $100 billion. Since the gross profit margin is at an intermediate level of 60%, especially the growth of the Service sector is significantly faster than that of other Apple businesses (the gross profit margin of other Apple businesses is usually 30%).

Furthermore, the analyst expects Apple to continue repurchase its shares aggressively and to lessen the number of shares by around 1 billion, which would also help Cupertino to attain the $2 trillion market cap milestone.

My take is that either Apple or Mircosoft would hit the milestone, as the latter already has $1.4 trillion market capitalization, not to mention Microsoft’s cloud business continued to grow at a fast pace, such as revenue from Azure, the company’s cloud computing platform, which soared by 59% thanks to the COVID-19 pandemic.

Leave a comment

Popular Stories

European iPhone 12 Models Have EU Regulatory Markings On Side

Apple's new iPhone 12 series, is the first major re-design following the introduction of the iPhone X in 2017. Featuring a square, flat design,...

Exclusive iPhone 12 Pro Wallpapers

Apple has unveiled the new iPhone 12 Series at its October Event, introducing four new devices. Appleosophy has obtained the wallpapers from the iPhone 12...

Writer of the Month

Avatar
Graphic Designer and Writer for Appleosophy Media

Recent Stories

Apple Watch SE Users Experiencing Overheating Issues

Users of the new Apple Watch SE have found the watch is overheating after a few hours of usage, with various reports in South...

Costco officially brings Apple Pay support to the gas pump

We reported a couple weeks ago that there were rumors regarding Apple Pay support coming to Costco gas stations and its pumps. A user on...