Apple: First Trillion Dollar Company?

  • Posted: 09 February 2012 10:39 AM

    How many iPhones, iPads, Macs, and iTVs should it sell to break the trillion dollar valuation threshold?

  • Posted: 09 February 2012 12:38 PM #1

    um.. it only needs to get reasonable PE of 25-30 with current sales..
    with 50%+ growth.. and same PE of 13-15 , 2 more years

  • Avatar

    Posted: 09 February 2012 11:39 PM #2

    I would say a trillion dollar market cap could easily eventuate in just 12-15 months time, even without PE expansion.

    Apple roughly doubles iphone shipments every year.

    For 2011 financial year it was 72 million iphones, for FY2012 we can conservatively estimate they are on track for 130 million units. add in a conservative estimate of 80 million ipads and you have 210 million iOS devices with an conservative average ASP of $600 and a ballpark after tax profits from each device of at least $200.

    $200 x 210,000,000 iOS units = $42 billion in after-tax profits from iphone & ipad alone. That doesnt even includes revenue from Macs, iPods, App stores, peripherals & new products, which would equal at least another $10 billion.

    So in October this year, the FY2012 reported EPS should be between $55-$60 a share. The first quarter of FY2013 should push EPS towards $70 a share - and with that a PE of 13-15 will get us to a trillion dollar market cap soon after.

    [ Edited: 09 February 2012 11:41 PM by Burgess ]


    Full Disclosure:

    - Long Apple
    - Pro: Apple HDTV, iPhone Air, Stock split, Consumer robotics