According to a recent prediction, Apple’s share price would rise to 1000$ in the upcoming 12-24 months pushing the company towards becoming the very first company in the world to worth 1$ trillion. The prediction is based on the trends observed in the past and the recent skyrocketing market value of Apple. Last week Apple’s share price overtook Google’s share price for the very first time – something Steve Jobs had planned by declining to split Apple’s stock in the past (speculation) – making it a red hot company in the market.
According to Daily Mail, Apple’s market value has more than quadrupled in the last 4 years from $120 billion (in 2008) to a staggering $633 billion (in 2012).
Rise of Apple and the Demise of its Rivals
Apple, based in Cupertino, with an estimated value of ~575 billion is already the most valuable company in the world. Apple’s rise in stocks in recent years has come at the expense of its rivals such as Nokia, Microsoft, and RIM – which have experienced losses estimated in billions. The continued appreciation and user satisfaction won by iPhones and iPads make it further concrete that Apple-mania isn’t going to slow down in the foreseeable future.
Senior technology analyst, Gene Munster said:
“There will be enough value over the next two-plus years for Apple to add another $400 billion in market cap. During the same period, RIM is likely to continue to lose market share and become increasingly irrelevant.”
The Billion Factor (China)
Apart from the share value, Apple’s growing presence in China is also being considered as a major factor for its economic growth due to the enormously expanding consumer market in China. According to recent estimates, Apple would sell upwards of 40 million handsets in China this year alone. There are also many reports that claim of a partnership being signed between China Mobile (Asia’s largest mobile telecommunication network) and Apple.
Steve Jobs’ iTV
Apple’s commitment to reinvent the television and turn it into a whole new market, cannot be ignored also. According to Walter Isaacson – the authorized biographer of Steve Jobs – Apple has been working on revolutionalizing television for a long time and might release its mature product in the near future.
If things go as planned and with no direct competitor insight, Apple would surely garner the 1 trillion trophy. What do you think? Let us know in the comments!