updated 09:50 am EDT, Tue July 24, 2007
Apple to hit $1T cap?
A stock market commentator argues that within the next five years, Apple will become the first company to reach a $1 trillion market cap, a 12:1 growth from current valuations. This is based primarily on 2007 estimates of profit and growth: Apple's retail stores, for instance, are said to earn $4,000 per square foot, by that measure the most successful retail venture in the world. iPod sales are expected to grow 50 percent to reach 60 million units, and Mac sales had already grown 100 percent between January 2006 and 2007, with end-of-year sales expected to be 12 million.
More importantly, these are foundations for profit on products Apple is only just releasing this year, including the iPhone, Apple TV, and Mac OS X Leopard. The iPhone in particular is predicted to mimic the dramatic popularity of the iPod, which went from three percent of Apple sales in 2004 to a current 40 percent, in tandem with music sales from the iTunes Store. Apple stock is expected to breach the $200 level this year, up from its current record levels. SeekingAlpha is thus recommending that investors buy into the company despite a high initial cost barrier.