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After $1 Trillion, Here’s Where Apple Goes Next

Posted On August 3, 2018 1:47 pm
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Apple’s historic $1 trillion milestone could soon be seen as a minor achievement on the way to even greater things.

Alhough it was the first U.S. publicly traded company to reach a $1 trillion market cap, Apple watchers think the company has plenty of growth ahead.

“This is not the end, that they hit $1 trillion,” GBH Insights analyst Dan Ives told CNBC Thursday. “I view this as just kind of speaking to a new stage of growth and profitability.”

Here’s how Apple can grow well beyond $1 trillion.

iPhone

iPhone sales growth may be slowing, but profits keep cranking along. For Apple’s fiscal third-quarter this year, Apple posted better-than-expected profits fueled by the iPhone business. That’s thanks to the iPhone X, which starts at $999. The X juiced Apple’s average selling price (ASP) of the iPhone to $724 and proved that Apple has the unique ability to keep profits growing at a healthy pace off a relatively flat user base. Samsung and other smartphone rivals have failed to recreate that winning formula.

The trend could continue, too.

According to spot-on tech analyst Ming-Chi Kuo of TF International Securities, Apple plans to release a larger version of the iPhone X this fall. That phone will be even more expensive than its thousand-dollar little brother, and will likely drive the iPhone’s ASP and profit growth even higher. There may never be a repeat of the iPhone 6 “super cycle,” where a new large-size screen drove both a massive number of upgrades and new customer growth, but as long as the company can keep raising prices without scaring customers off, profits should keep growing.

Continue Reading at CNBC.com

 Related: This Market is Now Worth $18.6 Billion! Learn More Here. 

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