San Francisco, August 10: Riding on the ‘better-than-expected iPad and iPhone sales’, the upcoming flagship device iPhone 8 could make the Cupertino-based giant the first company to reach and sustain a $1 trillion market cap, analysts have predicted.
According to a report in MarketWatch late Wednesday, since the announcement of its third quarter results, the stock momentum has added $56 billion to the company’s market cap.
Analysts from investment service company RBC Capital predicted that the stock momentum will continue as Apple will launch its flagship device iPhone 8 in mid-September.
RBC analysts said the iPhone 8 launch will create a ‘super cycle’ for the company.
“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, was quoted as saying.
Those “levers” to get to $12 per share in profit are revenue increasing from new iPhone models, including a higher-priced premium model, growing services revenue helping to expand profit margins, tighter cost control and strong stock buybacks, the analyst said.
Daryanani said that Apple’s share price would have to rise from its current level (about $160) to about $192 to $195, depending on the rate of the company’s stock buybacks, to reach the $1 trillion value.
According to reports, Apple might release three iPhones — iPhone 7S, 7S Plus and iPhone 8 — in September.
With an expected price range of between $900 and $1,100, two of the three iPhones are expected to be more expensive compared with previous versions.
Apple posted a quarterly revenue of $45.4 billion — up seven per cent YoY (year-over-year) — for the third quarter of 2017.
With revenue up seven per cent YoY, the company reported a third consecutive quarter of accelerating growth and an all-time quarterly record for services revenue.
The net income was up to $8.72 billion ($1.67 per share) from $7.80 billion ($1.42 per share) a year earlier.
iPhone sales were up 1.6 per cent to 41.03 million in the third quarter that ended July 1. IANS
2,232 total views, 3 views today
Adur Pradeep, OP Bhubaneswar: The impact of demonetisation and GST could have hurt the prospects of many sectors in the country, but the automobile manufacturers seem to have recovered from the cash crunch which adversely affected their business in November … Continue reading
14,666 total views, 8,800 views today
The Supreme Court has set out to re-examine a section of the IPC whose constitutionality has been upheld thrice — in 1954, 1985 and 1988 — despite appeals. Section 497, which deals with adultery, reads: “Whoever has sexual intercourse with … Continue reading
14,705 total views, 8,789 views today
Adur Pradeep, OP Bhubaneswar: The Rs 1,800-crore V-Guard Industries, a consumer electrical and electronics major in the country, targets revenue of Rs 100 crore from the state this financial year, according to a top official of the company in Odisha. … Continue reading
14,717 total views, 8,891 views today
Bhubaneswar: Acting upon the reports on tempering of fuel measuring equipment at petrol pumps, state government has decided to form squads to carry out surprise raids on petrol pumps to check such practices. “We will form squads comprising officials from … Continue reading
14,747 total views, 8,798 views today