Piper Jaffray analyst Gene Munster has raised his 12-month estimate for Apple stock from $768 to $910. But, more importantly, he believes that Apple shares could hit the $1000 mark shortly after this one year period. That means by 2014, Apple could become the world’s first trillion dollar corporation in terms of market cap.
Munster believes that the iPhone will continue to drive Apple’s financial success, suggesting that 70 percent of consumers that have owned an iPhone for at least two years will make the upgrade to a newer model in any given quarter.
“That suggests 33% of iPhones in a given quarter through 2015 are ‘in the bag,’” he said. “We believe this is conservative given it expects an average iPhone life of 24 months.”
Munster expects Apple to sell at least 33 million iPhones in the March quarter, a ten percent rise from his earlier forecast of 30 million. Munster’s figure is also set higher than J. P. Morgan analyst Mark Moskowitz’s earlier prediction of 31.1 million iPhones sold in the same fiscal quarter.
This isn’t the first time we’ve heard about Apple stock reaching the $1000 mark. Morgan Stanley analyst Katy Huberty previously claimed that Apple stock could peak at near $1000, while Apple co-founder Steve Wozniak said it is a very real possibility for the iPhone maker to hit the four-digit stock price.
Apple is already being analyst predictions for iPhone and iPad sales to kick off 2012, and their stock is currently trading at an all-time high of $628.19 per share as of writing. Apple will announce the financial results for Q2 2012 in an earnings call on April 24th. Do you think that Apple could become a trillion dollar company in a few years?