Bullish Analyst Says Apple Has Potential to Become Trillion Dollar Company Within 18 Months

Apple has the potential to become a trillion dollar company by 2019, according to RBC Capital Markets analyst Amit Daryanani.

In a research note on Monday, Daryanani said Apple could reach or exceed a trillion dollar market cap within the next 12 to 18 months.

An excerpt from Daryanani's research note, edited slightly for clarity:

In aggregate, we see a scenario where in the 2019 fiscal year, Apple sustains $12+ earnings per share and, assuming the valuation frameworks remains stable/improves, it should get AAPL stock toward $192–$195, which would equate to a market cap above $1 trillion.

Daryanani believes the so-called "iPhone 8" and the upgrade supercycle it's expected to drive will be a major catalyst towards Apple's path to a trillion dollar valuation. Looking further ahead, he thinks there is potential for Apple to continue growing its Services category revenue by double digits year over year.

Longer-term, we think there is potential for Apple to continue growing Services revenue by double digit year-over-year given the company's expanding installed base [of devices], increasing App Store sales within the current installed base, demand for cloud storage/compute services, and further adoption of Apple Pay.

Apple's Services category brought in $7.17 billion last quarter, from $6 billion in the year-ago quarter, representing 18 percent year-over-year growth. Apple CEO Tim Cook said the Services category is already the size of a Fortune 100 company, with hopes to double the category's revenue by 2020.

Earlier this month, Apple's market cap surpassed the $800 billion mark for the first time ever as the company's shares traded above $153. RBC has raised its Apple stock price target to $168, up from $157, given the upside it anticipates from the iPhone 8 and increasing services-related revenue.

Wall Street analyst Brian White also raised his 12-month price target for Apple's stock to $202, up from $185, earlier this month. White believes Apple "remains among the most underappreciated stocks in the world," and his bullish price target suggests the company could be valued at a trillion dollars within the next year.

Top Rated Comments

(View all)
Avatar
41 months ago
Apple CEO Tim Cook said the Services category is already thesize of a Fortune 100 company, with hopes to double the category's "revenue" by 2020. :- Macrumors quote

Remember Once Former CEO of Apple Said :-

"I was worth about over a million dollars when I was 23 and over ten million dollars when I was 24, and over a hundred million dollars when I was 25 and... it wasn't that important — because I never did it for the money."

"Apple's goal isn't to make money. Our goal is to design and develop and bring to market good products.... We trust as a consequence of that, people will like them, and as another consequence, we'll make some money. But we're really clear about what our goals are."

Times have changed,seems like now it's more for the money,Well done Tim Cook
Score: 21 Votes (Like | Disagree)
Avatar
41 months ago

Apple will have to release more than just watch bands to make that happen.

Dude, honestly the watch band comments are getting really old and it doesn't sound as witty as you think it does. Apple has a lot of R&D going on right now in autonomous vehicles and health functions for the Apple Watch. I'm part of a research study right now on my Watch, they're collecting my heart rate data from the Cardiogram app in an effort to make the watch detect heart beat abnormalities, heart disease and cardiac arrest. And yeah, they release bands in pretty colors too. Your point?

Do some research and have some faith. Buy some stock and you may very well make a tidy profit from it. Or just miss out on it, up to you.
Score: 20 Votes (Like | Disagree)
Avatar
41 months ago
Apple will have to release more than just watch bands to make that happen.
Score: 15 Votes (Like | Disagree)
Avatar
41 months ago

Apple CEO Tim Cook said the Services category is already thesize of a Fortune 100 company, with hopes to double thecategory's revenue by 2020. :- Macrumors quote

Times have changed,seems like now it's only for the money,Well done Tim Cook

Yeah, hiring 200 biomed PhD's and spending billions in research on a glucose-metering device surely corroborates your point. Only for the money.
Score: 11 Votes (Like | Disagree)
Avatar
41 months ago

Dude, honestly the watch band comments are getting really old and it doesn't sound as witty as you think it does. Apple has a lot of R&D going on right now in autonomous vehicles and health functions for the Apple Watch. I'm part of a research study right now on my Watch, they're collecting my heart rate data from the Cardiogram app in an effort to make the watch detect heart beat abnormalities, heart disease and cardiac arrest. And yeah, they release bands in pretty colors too. Your point?

Do some research and have some faith. Buy some stock and you may very well make a tidy profit from it. Or just miss out on it, up to you.

Money has become their greatest enemy right now.
It has forced them into a defensive/incumbent position and stalled ambition to make new, revolutionary products. Thus alienated them from their original mission, which is exactly what SJ warned about.
Look at the latest iPad, a 4/5 years old design that denies every form of inspiration/innovation.
Disruptive innovation (launching new products, initially cannibalizing existing products)
has become the opposite of what they want: to keep marketshare, to remain leader, to not disturb current business. Move up the premium laddder, rebranding existing stuff as Pro (adding some gimmicks to justify price increases)
So superfluous budgets, massive R&D, but hardly any incentive to use them. Thousands of patents, but mostly defensive, keeping them unused to prevent the competion to innovate.
Leading to very few new products and designs.
What essentially drives Apple now is greed on a massive scale, requiring TC to save the humble image ("caring" for the impaired, pleading "accessibility", to distract public attention from inaccessibility due to increased prices)
Health: lots of incentives in the approach to conquer new markets. But difficult or impossible to get accreditation in medical world, which they grossly underestimated.
Same for autonomous vehicles: failed partnerships, difficult to innovate, absolutely no position to make an inroad in entirely new market. Huge investments to be written off already. Facial loss will prevent them from getting out. Lack of position/momentum will force them to buy themselves in somewhere. Only then, if any, the race begins.
iPhone will remain strong (it is and remains the cash cow) but it will take them utmost energy to stay current. And with all the attention going into paraphernalia activities, that will go at cost of the mid-segment (Mac, iPad, IT)
Innovation level remains incredibly low: companies of this mammoth size should bring 10/20 new products a year (compare with the car industry to realize what true competition would do)
The secret pact with Samsung (going to its limits supplying key technology on a mass scale, despite being "sued") impairs every form of an open smartphone marketplace currently.
Score: 9 Votes (Like | Disagree)
Avatar
41 months ago
I kinda hate that they are seeing this much love and bullish predictions in the marketplace. I'm sure they look at this as an indicator that they are making the right decisions, but based on my (albeit anecdotal) experiences and conversations, people are seriously concerned about the Mac line and that may have a bigger impact on phone purchases than Apple realizes.

What happens when the "Sheeple" that raved about Apple's superior products start jumping ship and singing a different tune?

I think the dedicated minority has a bigger influence on the quiet majority than Apple is comfortable admitting.
Score: 7 Votes (Like | Disagree)

Top Stories

Apple Warns Against Closing MacBooks With a Cover Over the Camera

Friday July 10, 2020 11:12 am PDT by
Apple this month published a support document that warns customers against closing their Mac notebooks with a cover over the camera as it can lead to display damage. Image via Reddit Apple says that the clearance between the display and the keyboard is designed to very tight tolerances, which can be problematic. Covering the camera can also cause issues with automatic brightness and True Tone....

iPhone Users Who Experienced 'Batterygate' Can Now File to Receive Around $25 Settlement From Apple

Monday July 13, 2020 6:50 am PDT by
Earlier this year, Apple agreed to settle a U.S. class action lawsuit that accused the company of "secretly throttling" older iPhone models. Now, eligible iPhone owners are beginning to be notified about their legal rights and options. Under the proposed settlement, Apple will provide a cash payment of approximately $25 to each eligible iPhone owner who submits a claim, with its total payout ...

Apple Moving Forward on Semitransparent Lenses for Upcoming AR Headset

Friday July 10, 2020 7:24 am PDT by
Apple and Foxconn have reached a key milestone in the development of Apple's long-rumored augmented reality headset, with the semitransparent lenses for the device moving from prototype to trial production, reports The Information. Apple is developing the lenses on a single production line at a Foxconn factory in Chengdu in southwestern China, where most of Apple’s iPad production is...

Arm-Intel-PowerPC Universal Binaries Are Possible

Saturday July 11, 2020 1:42 pm PDT by
Casual MacRumors visitors may not realize that we have a very active PowerPC forum where users discuss issues related to PowerPC Macs that have not been produced since 2006. Threads range from hardware upgrades and software options to nostalgia: Photo by AphoticD Apple's recently announced transition to Apple Silicon (Arm) based Macs raised some interesting questions about future support...

Possible 'iPhone 12' Battery Certifications Suggest Lower Capacities Than iPhone 11 Series

Monday July 13, 2020 4:22 am PDT by
MySmartPrice has spotted certifications for three new Apple batteries that it believes could be for the upcoming iPhone 12 lineup, despite them being less capacitive than the batteries in the current iPhone 11 series. The batteries are identified with the model numbers A2471, A2431, and A2466, and appear on Safety Korea, China's 3C, and the Danish agency UL Demko. Apple is expected to...

Leaker: 'iPhone 12 Pro' to Come With 6GB of RAM

Friday July 10, 2020 1:59 am PDT by
Later this year, Apple is expected to release four OLED iPhones in three display sizes, including 5.4, 6.7, and two 6.1-inch models. Rumors suggest the 6.7-inch iPhone and one 6.1-inch model will be higher-end devices, and now leaker @L0vetodream has corroborated previous rumors about the internal specs of Apple's upcoming lineup. Rumors suggest Apple will use 5-nanometer A14 chips in its...

Kuo: Apple Silicon Macs to Include 13-inch MacBook Pro and MacBook Air This Year, 14.1-inch and 16-inch MacBook Pro Models Next Year

Friday July 10, 2020 2:58 am PDT by
At last month's WWDC, Apple officially announced that its Mac computers will be transitioned from Intel x86 to homegrown Apple Silicon chips. Apple said it plans to deliver the first Apple Silicon Mac by the end of the year and complete the transition in about two years. According to Apple analyst Ming-Chi Kuo, a 13.3-inch MacBook Pro with a form factor similar to the current 13.3-inch...

Google to 'Dramatically' Improve Chrome Impact on Mac Battery Life

Sunday July 12, 2020 1:56 pm PDT by
Google will address long-standing battery life issues, particularly on Mac devices, reports The Wall Street Journal. Chrome will improve "tab throttling" by better prioritizing active tabs and limiting resource drain from tabs open in the background. This is said to have a "dramatic impact on battery and performance." Google has reportedly been performing early tests on Mac laptops in...

Top Stories: iOS 14 Public Beta, iPhone 12 Size Comparison, 14-Inch MacBook Pro Rumors

Saturday July 11, 2020 6:00 am PDT by
After one round of developer beta testing, Apple unleashed iOS and iPadOS 14 to a wider audience this week, opening it up to members of the public beta program. There are lots of changes and new features to check out, but as with any beta, be careful about installing it on your main devices. Subscribe to the MacRumors YouTube channel for more videos. Other major stories this week included our ...

Apple Shares Humorous 'Working-From-Home Thing' Video

Monday July 13, 2020 9:31 am PDT by
Apple today shared a funny video focused on the problems that people working from home have to deal with, including noisy children, chaotic schedules, communication issues, and more. The video focuses on showing off Apple products and their capabilities that can be useful when working from home, such as the ability to scan a document with an iPhone, mark up a PDF, Siri Reminders, and more.The...