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AAPL Stock: 103.15 ( + 0.68 )

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Apple first to hit $1 trillion market cap?

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.




by MacNN Staff

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Comments

  1. shmoolie

    Joined: Dec 1969

    0

    Hmmm...

    If this is true then Wall St. should build a statue of Steve Jobs and place it front and center. I have to admit that I never thought I'd read anything like this story - but secretly hoped for it. It's getting harder and harder to remember the dark days of just a decade ago.

  1. RKDinOKC

    Joined: Dec 1969

    0

    baaah

    Everybody knows Apple is going out of business.

  1. Peter Bonte

    Joined: Dec 1969

    0

    Old story

    Posted on Apr 2nd, 2007

    stock was about $90 according to the article, but he did make a good prediction.

  1. OtisWild

    Joined: Dec 1969

    0

    not without xMac

    perhaps if Apple can ramp the "lower end" iPhones faster than they ramped the "lower end" iPods (such as the mini) they can get into the mass consumer feedback loop.. And without an xMac (which is where 90+% of the market for home computers lies) they'll never break 20% market share.

  1. LagunaSol

    Joined: Dec 1969

    0

    Retirement, here I come!

    I had originally planned to sell out if/when the stock hit $60. The Intel switch made me up my target to $100. Now with the iPhone, who knows! Guess I won't be paying off that home equity loan with my AAPL right away - this may be a long-term, big retirement cushion type of investment.

    Wish I had bought more at $13. LOTS more... :(

  1. rtbarry

    Joined: Dec 1969

    0

    $13 was sweet...

    ...and i wish i had alot more too.

    now, it's just psychologically hard to buy at these prices. even though it will continue to rise, and making money is making money.

  1. Johnny Niles

    Joined: Dec 1969

    0

    One word

    "Beleaguered"

    rofl

  1. Fast iBook

    Joined: Dec 1969

    0

    But wait...

    Apple isn't out of the woods yet! remember those words? I do. I remember in 1998 when aapl was trading at around 9 dollars. I have a feeling that apple will have its second coming, and hopefully the mac will gain dominance where it once was the only real choice for schools and businesses. Many people don't realize that apple used to pretty much run the global pc biz. With their only real competitor (msft) struggling to survive by tangling itself into ever greater numbers of industries, i can't help but see a victory ahead for apple. There will be a tipping point where people will clearly connect iPhone iPod and oh gee look, they make computers too, well i'm only buying their computers anymore. When that day comes, i think we'll all be better off. Who need 8 different versions of an OS anyways?

  1. starwarrior

    Joined: Dec 1969

    0

    Apple Two Step

    What is a few dollars here and there. I have some mad money and will buy some more now.

    I can see Apple and AT&T management doing the Texas Two Step on this one.

    AT&T disappoints and Apple blows the doors off tomorrow.

  1. MisterMe

    Joined: Dec 1969

    0

    re: but wait...

    fast ibook,/b> wrote: ... Many people don't realize that apple used to pretty much run the global pc biz. ...

    Maybe they don't realize it because it isn't true. Prior to IBM's entry into the personal computer market in 1981, Apple enjoyed a major position, particularly in schools with its Apple ][. However, there was no company back then which enjoyed the position that IBM was later to assume Microsoft developed software for several operating systems including CP/M-80, TRS-DOS, and Apple's ProDOS and others.

    The Macintosh never enjoyed a particularly strong position in education because for years Steve Jobs insisted that the Mac was a business machine. He continued to push models of the Apple ][ to schools well after the Mac was released. By the time, he saw the error of his ways, the IBM PC and clones had supplanted the Apple ][ as the biggest player in the education market. The Macintosh could not get it back.

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