On Tuesday, Wedbush analyst Daniel Ives said that Apple could reach to a $3 trillion valuation by next year thanks to “unprecedented upgrade cycle” it is experiencing thanks to strong iPhone demand.
Ives further said Apple could break its 2015 record of selling 231 million units by selling 250 million units this year.
Ives’, Asia supply chain checks continue to point to incrementally bullish data point for demand ties to Apple’s iPhone 12. He believes that Apple has already build more than 90 million units in last quarter, which is above his previous estimate of 85 million units.
The kind of launch uptrend is seen for iPhone 12, have not been seen in number of years in Apple. The only trajectory similar to iPhone 12 would be of iPhone 6 launched in 2014.
A new design and 5G capabilities are deriving the demand for iPhone, as well as Apple’s near 1 billion iPhone install base who are due for an upgrade.
China demand for Apple’s new iPhone 12 has also been a point of strength.
Ives reiterated his bullish view on Apple with a $160 price target, and a $200 bull-case price target, representing potential upside of 24% and 55%, respectively.
If Apple continues to execute at this pace, a $3 trillion market cap could be on horizon over the next 12 to 18 months. Apple currently trades at the market cap of $2.20 trillion.