• Apple on Pace to Become Trillion Dollar Company in Less Than Two Years



    If Apple can only maintain the pace of growth it presently enjoys, the venerable Cupertino, California-based giant will become the first trillion-dollar company the world has ever seen.

    With AAPL hovering around another new all-time record level of $630 today, nothing seems poised to keep the iPhone maker down. And once the HDTV arrives, all bets are off and "real growth" can begin - that's according to Gene Munster.

    The leading Piper Jaffray analyst says that Apple will see a market capitalization of one trillion dollars, likely by the close of 2014. That's approximately $400 billion more than Apple's market cap today. So where will all that cash come from?

    Half from more money pouring into tech stocks and half from money continuing to drain from the market cap of Apple's major competitors, who have roughly $1 trillion between them.
    In addition to investors dumping their money into Apple at a record pace, Munster sees iDevice ownership - particularly of the iPhone variety - being critical to this Growth. Munster sees 70 percent of all two-year-old iPhones being upgraded per quarter.

    "That suggests 33% of iPhones in a given quarter through 2015 are 'in the bag,'" Munster writes. "We believe this is conservative given it expects an average iPhone life of 24 months."

    Also today, Munster lifted his 12-month price target for AAPL to $910.

    Source: WSJ (via Market Beat)
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