Apple's market value is expected to significantly increase from the current $800 billion to $3.4 trillion in the next five years, as reported byTech Times.
Based on a research note by Morgan Stanley analyst Katy Huberty, Apple is likely to be valued at such a whopping figure when the year 2020 arrives owing to the fact that every component of its business is being prepped up for further growth and expansion.
"Apple's ability to charge a premium, grow recurring revenue, and accelerate the pace of category expansion argue for a re-rating more in-line with platform companies, at 18-19x,” Huberty explained.
Apple's considerable growth will be boosted by the fact that the tech giant is covering practically all aspects that affect the everyday lives of consumers; these include products such as the Apple Watch, Apple TV and Apple Car.
According to Huberty, Apple’s current product lineup is already reaching out to address roughly 30 percent of its consumers’ needs. If the company aims for an expansion, it can do so by concentrating on “significant opportunities.”
The research analyst also gave an optimistic view on the possibilities for Apple Pay and the tech giant’s music streaming service. According to Huberty, Apple gains a strong advantage against competitors with its ability to appeal to users and keep them committed to the brand.
To simply put it, if an individual buys an iPhone, he or she will subsequently prefer an iPad or any other product from Apple due to his or her strong loyalty towards the company.
Aside from product preference, Apple users are expected to demonstrate loyalty through their willingness to pay for premium prices in exchange for a high-quality experience offered by the company, such as through the iOS.
Based on Huberty’s projections, the much-speculated Apple Car may have the largest contribution to the company’s revenues. Such vehicle will add $1.6 trillion value to Apple as based on the analyst’s estimates.
Aside from the Car, the company may further achieve growth through its Apple TV, especially if it comes up with unique and impressive content that is fit for its digital media player alone.
The Apple Watch may also become a highly popular device particularly for roughly 10 percent of current iPhone users; the much-anticipated wearable has already been set for an official release on March 9.
