Analysts at Wedbush are very bullish about the future of Apple Inc. In fact, these people believe that the Cupertino, California-based tech empire could be valued as much as $2 trillion by end of 2021.
Good things are in the offing for Apple. Their basis? Imminent occurrence techies refer to as "supercycle" that will boost sales of the company's iPhones as a result of the 5G explosions could push Apple Inc's stocks past the $400 level.
According to Wedbush analyst Dan Ives, who gave Apple an Outperform rating, the company is already witnessing a massive upgrade potential courtesy of 5G network plans that are expected to increase iPhone sales
Ives sees iPhone units of the largest tech company in the world today, with a $350 stock price target, to rally from 200 million to 220 million.
Reinvigorating smartphone revenues, Wedbush claims, in addition to continued growth in sales from services provides a "bull case" for a $400 a share market valuation, a figure Ives says will equate to a $2 trillion market capitalization.
Looking ahead, the analyst is certain that Apple has the capacity to become the first $2 trillion company by end of 2021, considering the 5G tailwinds and market growth prospects in the coming years.
Ives further noted that in the services business, Apple Inc assigns a $500 billion to $650 billion valuation range considering the significance of this major source of profits that is enjoying a new appreciation by investors.
With approximately 350 million iPhones in the "window of an upgrade opportunity" other analysts are optimistic that the Cupertino region has a great opportunity to corner this supercycle.
Ives pointed out that a major 5G cycles is just around the corner and this will feature a vast array of new smartphone models for the upcoming iPhone 12.
In pre-market sessions Tuesday, Apple stocks moved 0.3 percent lower to change hands at $316.12 each, a step that would leave the company with a 53.5 percent increase in the last six months.
Last week, after analysts at Credit Suisse raised their price aim for the iPhone manufacturer, Apple pushed gains into new all-time peaks, citing rapidly growing sales in Mainland China.
Apple's iPhone orders in China for December was up 18.7 percent from the same timeframe in 2019, Credit Suisse reported, with data provided by the Ministry of Industry Information Technology (MIIT). This figure is well ahead of the overall drop in local smartphone sales of 13.7 percent.
Reuters stated that figures from the Academy of Information and Communications Technology of China and its own estimates showed deliveries of about 3.2 million units in December, a gain of 18 percent from the same month last year.
