Apple Inc. Could Be A $3 Trillion Company Under Right Circumstances
It is possible Apple Inc. (NASDAQ:AAPL) could double its valuation to $1.5 trillion, and then double it again to $3 trillion. However, the company will require the right circumstances to hit the lofty valuation. One of the things that could help Apple significantly increase its valuation is the rumored electric car.
Market observers have been wondering whether Apple Inc. (NASDAQ:AAPL)’s shares could double to give the company a valuation of $1.5 trillion. However, Navellier & Associates chairman, Louis Navellier, said that it is even possible for shares of Apple to double twice, to put the company’s valuation at $3 trillion. The valuation of Apple is currently about $720 billion.
Strong product pipeline
The reason Apple Inc. (NASDAQ:AAPL)’s valuation could reach $1.5 trillion is its strong product pipeline. The company sold more than 74 million iPhones in the most recent quarter, blowing Wall Street’s estimates that called for less than 70 million iPhone sales. Apple’s push into large-screen smartphones, with iPhone 6 Plus, fueled the sale of its iPhone devices the the December quarter.
The other device that could significantly boost Apple’s revenue and cause a spike in share price, is the upcoming Apple Watch. Apple recently confirmed that the wrist wearable will be available in three versions, with the cheapest version, known as Apple Watch Sport, starting at $350. The high-end Apple Watch Edition will price at $10,000 or more.
Navellier noted that shares of Apple Inc. (NASDAQ:AAPL) could double twice because of the speculated Apple Car. There have been rumors that Apple is considering a plunge into the electric car business. The company has already built a team to push forward its car ambitions, according to sources. If all goes well, production of Apple’s electric car could begin by 2020, people with insider knowledge of the project have cited.
Nevertheless, for Apple Inc. (NASDAQ:AAPL) to double its stock price twice, the company will have to work hard to hold competition. In the smartwatch market, a number of technology companies are pushing out wrist wearables, which could put pressure on Apple in the segment. Concerning electric cars, Apple has Google Inc (NASDAQ:GOOGL) and Tesla Motors Inc (NASDAQ:TSLA), amongst other competitors, to face.
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