At the time of writing, Apple has achieved the highest market cap in the United States with a $2.5 trillion market value and a $150 share price. Last week, AAPL’s price hit $144 which set a new milestone for the company of $2.4 trillion market share. The company’s unprecedented success can be accredited to its consistent introduction of innovative technology in new a variety of products, services, and features, especially during the COVID-19.
Apple has shown consistent quarterly growth, since Q2 2020
After a slow start in Q1 2020, Apple’s journey towards U.S first company to hit $2 trillion market cap from the second quarter of 2020. Since the launch of the iPad Pro (2020) in March and iPhone SE (2nd generation) in April that year, Apple constantly launched new products for users to get through the COVID-19 pandemic stay-at-home lifestyle. The consumers’ technology trend saw a shift in the global health crisis; larger displays, video conferencing services, and fast performance at affordable prices.
Therefore, at Q2 2020 earnings call CEO Tim Cook announced that Apple’s services like iMessage, FaceTime, and Apple News hit a new all-time high record. In Q3 2020, the company reported an 11 percent increase for the same quarter in the previous year with $59.7 billion in quarterly revenue.
Cupertino tech giant launched iPhone 12 series with 5G network support, iPad Air, Apple Watch Series 6, and other products which resulted in an impressive $64.7 billion revenue in Q4 2020 earnings report. Mr. Cook accredited the 59 percent YoY growth to innovation, ideas, and products which “only Apple can deliver.”
The outstanding growth increased by folds in Q1 2021, with a 21 percent increase, the company recorded its best quarter of all time with $111.4 billion in revenue and in Q2 2021, the revenue was up by 54 percent Y-oY with a record-breaking $89.6 billion in quarterly revenue with growth across all of Apple’s product lines, specifically Services and Mac sales. The company’s Q3 2021 earnings report will publish on June 27 on apple.com, followed by an earnings call.
In the latest July Q3 2021, the company reported a record $81.4 billion in revenue with 36% Y-o-Y growth.
Earlier, tech investor and former Wall Street analyst, Gene Munster estimated that Apple’s market cap is on its way to $3 trillion by 2022 with a $200 share price.
Based on AAPL’s trading at a price-to-earnings ratio or multiple, of 35 for 2022 earnings estimates, Gene Munster predicted that Apple’s stock price will reach $200 per share and “would put Apple’s market cap over $3 trillion.”
He said, that This is generally thought of as a play on iPhone, a 5G play. That’s good. That will impact the numbers in a positive way, but this acceleration of digital transformation, I think it’s powerful. People working from anywhere are going to be arming up in the next 12 to 24 months, buying more Macs, iPads, services.”