December 4 2021
12:15 AM
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Apple still reliant on one core product as it nudges $3tn hurdle

Story by Dan Milmo and Graeme Wearden

Story   Source

Published on September 12, 2021 7:00 AM
Apple is to become the world's first three-trillion-dollar company, the iPhone will play a key role in that feat. The tech firm unveils the latest iteration of its signature product on Tuesday, and the success of the iPhone 13 will determine how quickly Apple goes from its current market capitalisation of just under $2.5tn (£1.8tn) to $3tn.

"We believe Apple is on a trajectory to hit $3tn by early 2022 and the iPhone 13 will be a lynchpin of growth," says Dan Ives of investment firm Wedbush Securities.

He does not believe that forecast is changed by last week's ruling that the company must not block app developers from guiding users towards making payments outside the Apple app system – a blow to one of its most profitable services.

But the share price could do with a bounce from the new iPhone following Friday's ruling. Apple's market capitalisation needs to rise by around 22% if it is to hit the magic $3tn mark – it reached $2tn only in August last year – and it has already risen 12% this year. The iPhone accounted for 50% of Apple's $275bn in revenues last year, with the next-biggest unit being its services division (the app store, Apple TV and more), which accounts for 20%. So Tuesday matters.

According to the MacRumors website, the new iPhone will not be a radical departure from its predecessor. The four models will come in sizes that include 5.4in, 6.1in, and 6.7in. Two will be in the high-end "Pro" range, with the two more affordable. The main improvements in the iPhone 13sare expected in camera lenses and battery capacity.

Despite a saturated and ultra-competitive global smartphone market, Ives believes two factors will benefit the ...