Just a couple days back, Apple's net market value crossed $900 billion for the very first time- thanks to the long lines for iPhone X. This ground breaking achievement wasn't due to the fact that Apple was making hefty profit from its newest line of product just launched recently. It was mostly due to other legacy products like iPhone 7 and 7 Plus being sold at an increasing volume as well.
But does all this mean it is on its way to become the first $1 trillion company in the valley? If you look at the numbers, the math is pretty simple. All Apple needs to do is only go up another 10% or so to top the trillion dollar mark. But is it that simple though? Apple market cap, however, has been racing towards $1 trillion over the past three quarters. The iPhone maker will be hoping that the iPhone X will push the Apple market cap to cross that level. Early reviews of the iPhone X have been positive with the phone being touted as the “best iPhone yet.” So, there are good chances of the stock crossing the trillion mark this holiday season.
As many have noticed Apple CEO Tim Cook wouldn't shut up talking about augmented reality (AR) and its future potential. This year, as planned, Apple took a big leap towards AR with the latest version of its iOS mobile operating system. And if you think about it, this move made Apple's iPads and iPhones collectively the world's largest AR platform.
Although many might think AR technology might be as a whole be in a primitive age, most tech gurus believe AR-powered smart glasses or other eyewear will eventually replace smartphones. Apple is planning to launch some AR smart glasses which are currently under development, according to Bloomberg reported this week. These rumour mills (or insider tip if you might say) are also a key factor in driving the share prices up.
For the fiscal fourth-quarter, Apple sold 2.6% more iPhones including the less demanded iPhone 8. The company is forecasting total revenue to touch $84 billion to $87 billion in the holiday quarter, around 7% to 11% higher than the previous year. In addition, the company is also cash rich, with $268.9 billion in cash and cash equivalents. Further, the upcoming tax reforms are also set to benefit the company significantly. According to industry analysts, one particular policy is going save Apple billions: a lower tax rate on repatriated foreign profits.This news did affect Apple share in the market temporarily resulting up to a rise of 3%. And thanks to Apple's blockbuster quarterly results, investors clearly believe by next year this time Apple is surely going to cross the trillion dollar mark.