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Here's how Apple will reach a trillion dollars of value in 2018

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Published on Dec 27, 2017

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A new report published by Barron's analyzes in depth as it could make Apple to reach a market capitalisation equal to one thousand billion dollars.

With the iPhone X, the potential growth in China, the efforts for the repurchase of the shares, the recent tax reform in the United States and much more, Apple may have that impulse that you are missing and get to the capitalisation by a thousand billion dollars in 2018.

According to Barron's, this is also a good time to buy Apple stock now that the value of the company is consistently ranked on the 900 million dollars. Analysts believe that soon it will be registered a great growth, thanks to sales of iPhone X, the price of which is higher than any other smartphone Apple released in the past. All this helps to ensure that profit margins are higher. In addition, the item “Services” is helping Apple to gain more and more capital, especially thanks to Apple's Music and App Store.

In the last fiscal year, Apple has produced revenue to 229.2 billion dollars with a profit of 48.3 billion, which is a figure higher than any other company in the world. In 2018, these revenues will also increase thanks to the higher margins seen above, in addition to the purchase of several shares of AAPL.

In addition, the company is now recording results year on year more and more stable and this is increasing the confidence of investors. Indeed, this growth is destined to increase more and more already from 2018 onwards.

David Pearl, co-chief investment officer of Epoch Investment Partners, explains that “Apple will not you are just selling a phone. You are selling the experience more simple and elegant for mobile communications and computing, so much so that the revenue of its services and grow more quickly than its products”.

Today, it is estimated that Apple has around 900 million customers around the world, with the facilities which now constitute 13% of all revenue. The fact that Apple records the highest rate customer loyalty makes us believe that by the end of 2018, its value reached one thousand billion dollars.

In 2018, Apple is also expected to increase its presence in China, a market that will be very important for the future of the company. In 2017, the growth of Apple in the southeast asian country has been 70% and 2018 is expected to confirm these numbers.

Also, the fiscal reform in the US will help to reach this result, Apple could repatriate its cash at a uniform rate of 15.5%. Also thanks to this return, Apple will have the opportunity to buy back many more shares.

In 2018, Barron's expects an increase for other categories of products such as HomePod, ARKit and CarPlay.

 

Link to the original article: Here's how Apple will reach a trillion dollars of value in 2018

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