Analyst reports / Apple may become the world's first company with a market cap of 2 trillion dollars, this feat will be achieved in four years

 

·      Market research firm Evercore ISI reported

·      In 2018, the market cap of one trillion dollars was touched

The Economic. With the growth in the services and wearables business, the US tech company Apple could become the first company in the world with $ 2 trillion market capitalization (MCAP). This is stated in a report by market research firm Evercore ISI. According to the report, Apple could achieve this feat in the next four years. Apple was the first American company to cross the $ 1 trillion mark in 2018.

 

Apple's services business could be $ 100 billion in four years

According to a report by analyst Amit Daryanani, Apple's wearables business could grow to $ 60 billion in the next four years on the basis of expansion of AirPods and Apple Watch. At the same time, the services business can grow to 100 billion dollars. The analyst expects Apple to aggressively buyback the stock. Currently, the company's mcap is around 1.4 trillion dollars.

 

Apple will continue to cut the number of shares

The analyst says that Apple could cut its shares by 1 billion in this period. According to the analyst, Apple may reduce the number of shares to 3.6 billion in FY 2024 as compared to 4.6 billion in FY 2019. According to Daryanani, if Apple's stock price crosses $ 550 per share, the company's MCAP will cross $ 2 trillion, based on this share number. Apple's stock price is currently trading at $ 321.85 per share.

 

Services sector will establish new trend

The report says that iPhone sales have plummeted due to uncertainty in supply and demand. The services segment is setting new trends for Apple. In the March quarter of this year, Apple's services sector registered a growth of 17 percent on an annual basis. During this period, Apple received $ 13.3 billion in revenue from the services sector. The company has set new records in its services category in the App Store, Apple Music, Apple Video, Apple Cloud Services, Applecare, Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card.

 

Apple TV Plus and Apple News Plus continued to grow

According to Apple CFO Luka Mistry, new services such as Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card are constantly adding new users. Apple now has about 515 million paid subscriptions on its platforms. Their number was 125 million a year ago. The wearables, home and accessories segment also generated a record 6.3 million revenue in the March quarter and grew 23 per cent year-on-year.