Apple – The 1st Trillion Dollar enterprise

Apple – The 1st Trillion Dollar enterprise
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Apple Inc. a company that has seen the highs and then the lows and now the nearly insurmountable highs that it has captured over the past decade and a half to give it the legendary bellwether status that it has in our minds.

Apple has most of the times taken an idea already present in the market and bettered it, immensely bettered it and made it mainstream. Their brilliantly marketed ideas and products have changed the landscape of the tech world. Apple has ingrained itself in our lives so much so that we have gargantuan queues even two days prior to when iphone sales start in a store.

To talk about the kind of impact Apple has had in our lives one has to look at all their products that have been released in the market and the way they have been gobbled up by the masses. The Apple 1, the Super Bowl commercial, the iPod, iTunes, the iPhone, the AppStore all these products have entrenched themselves with their own distinct use in our everyday life so much so that sometimes when they don’t work we feel so much at loss as if the love of your life has broken up with you.

The biggest testimony to its success right around the corner

Apple right now is clamoring for a different kind of first, the first 1 trillion dollar business. Let us let that sink in, a trillion dollars. No one had ever thought that this would be a reality but in the present day and age, Apple is making that a reality one can’t overlook.

Expert’s Interest

Experts are showing renewed interest in the Apple Sock since its recent almost 9% downgrade in value from the high’s of $156.10 in May. The sentiment on Wall Street is very high that Apple with its future line of products and services such as the iPhone 8 and Mac OS-High Sierra lined up for their upcoming releases will propel the stock much-much higher, with analyst Rian White’s projections that the upper circuit for the stock is $202. He also states that this recent sell-off is a buying opportunity for investors.

With the higher average selling price (ASP) and unit growth projected for the iPhone 8 leading to a higher revenue growth for FY18/19 (skewed towards the higher single digits), the gross margin set to expand by 20-30bps primarily on the back of its services and its operating margins set to expand by 100bps give the stock a higher EPS for FY18/19 than FY17/18.

Into the Unknown

The scenario that Apple Inc. is going to be able to keep its EPS at $12+, the loyalty that an Apple product garners and the strong business fundamentals is what is going to push Apple’s stock price that high. The 1st trillion USD is going to be very hard but if anyone is suited to conquer it, it is Apple Inc.