Apple has become officially the first US company which has crossed the 700 billion mark in terms of market valuation. So the question is what does this really mean in simple terms? This means you can give 100 dollar to every single human being on this planet and you will still have money left Or you can go to Spain and buy all the IBEX stocks and you will be still left with 46 billion dollars. The tech giant’s market share is equal to the combine market share of Google and Microsoft.
Apple has sold nearly 1 billion iPhone since 2007 and only last quarter they have sold 74.5 million iPhones so this means that we have more people joining the apple Eco system or commitment from the existing users. It is the apple ecosystem which has the most substantial value and apple is making sure that it’s ecosystem becomes more stronger by day.
The recent collaboration with the IBM is an evidence that apple is trying to penetrate its products more deeply in corporate culture which is heavily influenced with Microsoft and blackberry. Any positive development is going to increase its market share further.
Apple’s wrist watch could be the biggest product once it’s lunched which is expected in April. This could be a game changer for the company and I do believe it could become a necessity rather than a luxury, given how much the product is focused on the health apps. Apple may be late in this game as other competitors have already made their products available but the hopes are that once it is released, it will be the market leader. But a disappointment in terms of innovation could really hurt the company’s image.
Apple is known for leading the way or setting the trends and I believe given that the company has announced a massive solar project to support its newly build plant, it could only be the matter of time before other companies start to produce their own energy. In the longer term, it will help them to reduce their energy expenditure and become more environment friendly.
Given the above facts, we believe the stock could hit 135 by next quarter.