Apple shares neared record levels on Monday as an analyst predicted the iPhone maker could become the world’s first $2 trillion company as soon as next year.
The upcoming launch of its 5G iPhones at the end of 2020 will position the Cupertino, Calif. tech giant to take advantage of “continued demand snapback in China” and supercharge its stock price, according to a research note from Wedbush Securities.
The firm raised its price target to $450 from $425, adding a bull case target of $525. Apple currently has a market cap of $1.7 trillion. It first passed the trillion-dollar mark almost two years ago in August 2018 when its share value hit $207.05.
To reach the $2 trillion threshold, Apple stock would need to reach a valuation of roughly $462 per share. Shares of Apple were up 3.6 percent Monday morning, trading at $397.53, not far off their all-time high of $399.47
With the holiday season, which is traditionally Apple’s most profitable period, just around the corner, Ives predicts that Apple will be celebrating to ring in the new year.
“We think that when the ball drops in Times Square, Apple will have hit $2 trillion,” he told The Post.
Apple will see “roughly 20 percent” of iPhone upgrades coming from China in the coming year, analyst Dan Ives wrote, and will be able to “cement its installed base” in the country thanks to its wide range of phones, including the cheaper iPhone SE.
The next iPhones are also rumored to have 5G hardware, which will allow the phones to access a network that promises faster internet and quicker response times than LTE.
Wedbush also forecasted that Apple will sell 90 million AirPods units this year — compared to 65 million in 2019 — thanks in part to its upcoming move to not include complimentary wired headphones with the next generation of iPhones.
Separately on Monday, Digitimes reported that Apple is increasing its third-quarter MacBook orders by 20 percent thanks to the coronavirus pandemic. Americans continuing to work from home has increased reliance on laptop computers, and the company has upped its supplier shipments to follow suit, according to supply chain sources.