With the growth in the services and wearables business, the US tech company Apple could become the world’s first company with $ 2 trillion market capitalization (MCAP). This is stated in a report by market research firm Evercore ISI. According to the report, Apple could achieve this feat in the next four years. Apple was the first company in American to cross the $ 1 trillion mark in 2018.
According to a report by analyst Amit Daryani, Apple’s wearables business could grow to $ 60 billion in the next four years on the basis of expansion of AirPods and Apple Watch. At the same time, the services business can grow to $ 100 billion. The analyst expects Apple to aggressively buyback the stock. Currently, the company’s mcap is around 1.4 trillion dollars. The analyst says that Apple could cut its shares by 1 billion in this period. According to the analyst, Apple may reduce the number of shares to 3.6 billion in FY 2024 as compared to 4.6 billion in FY 2019.
According to Daryanani, if Apple’s stock price crosses $ 550 per share, the company’s MCAP will cross $ 2 trillion, based on this share number. Apple’s stock price is currently trading at $ 321.85 per share.
The report says that iPhone sales have plummeted due to uncertainty in supply and demand. The services segment is setting new trends for Apple. In the March quarter of this year, Apple’s services sector registered a growth of 17 percent on an annual basis. During this period, Apple received $ 13.3 billion in revenue from the services sector. The company has set new records in its services category in App Store, Apple Music, Apple Video, Apple Cloud Services, Applecare, Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card.