DAVID EINHORN: Here's Why Apple Is Misunderstood, And Could Be Worth $1 Trillion

Contra bond god Jeff Gundlach, investor David Einhorn is super-bullish on Apple, and thinks the market cap could go to $1 trillion.

From our liveblog of the Ira Sohn event, here are our notes on his explanation.

Some worry if Apple share price doubles, it will become a $1 trillion company. Einhorn said he consulted regulation, and there’s no limit on $1 trillion market cap.

Many mistakenly assume Apple is a hardware company, but it’s a software company. Its value comes from iOS, iTunes, iCloud. Future competitor of Apple has to make a product that’s A LOT better.

“I believe Apple is software company that monetizes its value from repeated sales of high margin hardware,” Einhorn says.

Hard time seeing how anyone rates Apple as below average.

So basically, people think of Apple as a hardware company and that’s how its still misunderstood.

He also noted that the fact that SO MANY hedge funds own Apple is seen as a turnoff.

Worth noting that yesterday Einhorn’s fund Greenlight disclosed a 1.4 million share holding in Apple

For more Ira Sohn coverage, see here >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.