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Apple expected to hit $3 trillion market cap sometime this year

By Cookie Monster - on 4 Jan 2022, 12:00am

Apple expected to hit $3 trillion market cap sometime this year

The Apple iPhone 13 lineup.

Apple is on track to become the first $3 trillion market company in 2022 according to Wedbush analyst Daniel Ives.

Ives believes the robust demand for the iPhone 13 this year and its growing Services business will help Apple hit the $3 trillion market cap sometime this year. Based on his supply chain checks over the past few weeks, Ives claims demand for the iPhone 13 exceeds that of the supply by 12 million units. This will add to the tailwinds in March and June 2022 as the global chip shortage eases in the first half of the year.

The Services business is estimated to be worth $1.5 trillion thanks to the robust ecosystem of devices. Ives added that Apple is in the midst of "its strongest product cycle in over a decade led by iPhone 13". The Services business is expected to generate over $100 billion annual revenue by 2024.

Contrary to Ives' claims, Bloomberg believes demand for the iPhone 13 is slowing down due to the Omicron virus variant, rising inflation and longer delivery times. Advanced orders for the year may not be necessary.

Source: Philip Elmer-Dewitt via 9to5Mac

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