Editor's note: Apple dominated the global 5G smartphone market in the third quarter of this year with a market share of 25 percent; Citi analysts raised Apple's price target to $200 on Wednesday.
Author: Jling
If you had invested in Apple $AAPL stock a year ago, you would now have an annual return of more than 33 percent. Strategy Analytics recently released a survey report, Apple with a market share of 25% to dominate the global 5G smartphone market in the third quarter of this year. On Wednesday, Citi $C raised apple price targets to $200 and gave five reasons. As of Wednesday's close, Apple's stock price closed at $175.64 per share, up 1.53%; Apple's total market capitalization is currently $2.88 trillion.
Quotes source: Huasheng Securities
Looking ahead, Citi analyst Jim Suva believes there are "several positive drivers" that could push Apple's stock price up, pushing the stock to the $3 trillion mark. He believes that Apple's products and services are expected to remain resilient (in 2022), that the release of new product categories is not reflected in Apple's current market capitalization, and that Apple stock is expected to continue to bring returns to investors.
1. The iPhone plan will be steadily advancing
Suva expects Apple's revenue to grow year-over-year next year, largely based on Apple's iPhone plans. He expects Apple to continue its steady rollout of the iPhone next year — a new iPhone SE early next year and an iPhone 14 next fall (with new advances in camera and battery performance).
Morgan Stanley $MS analyst Katy Huberty is also bullish on Apple's revenue growth. In the quarter ending December (fiscal 2022 Q1), Apple's iPhone orders are expected to remain steady at 82 million, and iPhone revenue is expected to reach $72.9 billion — higher than Wall Street analysts generally estimate $67 billion. First-quarter sales are expected to reach $122.2 billion (market estimate of $118.6 billion) and earnings per share of $1.97 (market estimate of $1.89).
2. The first VR/AR device is expected to be unveiled next year
Suva said, "In terms of its impact on the consumer tech market, the device could eventually rival the iPhone." We believe that mixed reality devices will have the processing power to run independently without being tethered to a Mac or iPhone. ”
Previously, Bloomberg's Mark Gurman said that Apple's rumored augmented reality (AR) and virtual reality (VR) devices will focus on gaming, media consumption and communications.
3) Regulatory issues are unlikely to have much impact on their service revenue growth
Recently, The Competition Commission of India (CCI) was reviewing an allegation against Apple about apple harming competition by forcing app developers to use its proprietary system, accusing the APP Store of charging up to 30% commissions on in-app purchases. It is reported that the "complainant" may include Epic Games, Spotify$SPOT and other companies.
In response, Apple denied the allegation in its filing with the CCI, stressing that its market share in India is only 0-5%, while Google occupies 90%-100%, "Apple is not dominant in the Indian market, without dominance, there will be no abuse." ”
4. Dividend payments and share repurchase ratios are expected to increase
Apple is expected to announce share buybacks in April to increase the total amount of its share repurchases to $90 billion, while raising dividend payments by 10 percent next year. According to open market data, Apple has bought back $85.5 billion in shares on the open market this year.
5, Apple cars or still next year's hot topic
According to industry media reports, Apple's first electric car, the AppleCar, may come out next September, at least two years earlier than the original plan, and the prototype has been tested in California.
Asked why Apple wants to enter a market where it will compete with other companies with years of experience, Suva said that by 2025, the potential market for electric vehicles will exceed the entire smartphone, PC, tablet and wearables market combined.
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