- Apple‘s valuation can approach the $US1.5 trillion level, Wedbush analyst Daniel Ives said Friday.
- Apple released three new iPhone models in September and discontinued all other older versions, which can help capture the underlying demand among customers that have decided to bypass previous models, Ives said.
- China consumer demand is a key driver, he added.
- iPhones, Apple Watches, and wireless AirPod headphones are not included in President Donald Trump’s tariffs on $US200 billion worth of Chinese imports.
- Watch Apple trade in real time here.
“Apple’s valuation can approach the $US1.5 trillion level based on our analysis of the monetisation potential of its unparalleled consumer installed base over the coming years coupled by further multiple expansion around the services business,” Wedbush analyst Daniel Ives said in a note sent out to clients on Thursday.
And China consumer demand is a key driver.
But Ives added that as trade worries hang around the Wall Street, and possible supply-chain disruption remain unclear, investors need to keep a very close eye in the coming months. The tech giant said in July when posting its second-quarter results that there were some signs of slowing growth in its key device businesses.
Apple is set to report third-quarter earnings on November 1, with analysts surveyed by Bloomberg expecting earnings of $US2.77 per share on $US61.3 billion of sales.
- Top Chinese officials have staged an extraordinary intervention to stem the stock market bleeding
- Beware the ‘real killer’ in markets that’s threatening to strike after decades in hiding
- The video game industry is going to have a very happy holiday season – these 6 charts show why
- GOLDMAN SACHS: Investors are making extraordinary bets that these 15 stocks will explode higher before the end of the year
Business Insider Emails & Alerts
Site highlights each day to your inbox.