If Apple will become the world’s first three trillion dollar company, the iPhone will play a key role in this achievement. The tech company is unveiling the latest iteration of its flagship on Tuesday, and the success of the iPhone 13 will determine how quickly Apple grows from its current market cap of just under $ 2.5 billion ($ 1.8 billion). sterling) to $ 3 billion.
“We believe Apple is on track to hit $ 3 billion by early 2022 and the iPhone 13 will be a pillar of growth,” said Dan Ives of investment firm Wedbush Securities. .
He doesn’t think the forecast is altered by last week’s decision that the company shouldn’t stop app developers from guiding users to payments outside of Apple’s app system – a blow to the business. one of its most profitable services.
But the share price could do with a rebound in the new iPhone after Friday’s decision. Apple’s market capitalization needs to rise about 22% to hit the magic $ 3 billion mark – it only hit $ 2 billion in August of last year – and it’s already up 12 billion. % This year. The iPhone accounted for 50% of Apple’s $ 275 billion in revenue last year, with the second largest unit being its services division (the App Store, Apple TV and more), which accounts for 20%. So Tuesday counts.
According to the MacRumors website, the new iPhone won’t be a drastic change from its predecessor. All four models will be available in sizes including 5.4 inches, 6.1 inches and 6.7 inches. Two will be in the high-end “Pro” range, the two more affordable. The main improvements of the iPhone 13 are expected in terms of camera lenses and battery capacity.
Despite a saturated and ultra-competitive global smartphone market, Ives believes two factors will benefit the latest iPhone: the global roll-out of super-fast 5G networks and the fact that around 300 million iPhone owners have not put their hands on their phones. phone upgraded for three and a half years. years.
Over a billion iPhones are used globally and generate continued revenue for Apple as smartphone owners access its app store and listen through its AirPods.
Still, the attention paid to this launch – a new Apple Watch and AirPods are also expected – underscores the company’s reliance on the iPhone. Her covert attempts to launch an autonomous car suffered a further blow last week when she lost the executive in charge of the program to Ford; he was the fourth senior member of the auto team to leave since February. Sooner or later CEO Tim Cook will have to find another major success.
Ives, however, is confident about Apple’s pipeline: “The iPhone will continue to be the heart and lungs of Apple history for the next decade. But we believe that next year Apple will introduce Apple glasses, and then in 2024, despite the recent departure, they will launch Apple Car.
Goldman Sachs analysts are more skeptical, although he acknowledges that the pandemic has boosted demand. “Consumers have high levels of savings and the value of Apple products has arguably increased with more flexible work and study,” he says, predicting a 19% year-over-year increase in income. average per customer this year.
Goldman predicts a drop in performance next year. But he acknowledges that Covid has changed consumer behavior, leaving open the possibility of a brilliant 2022. “We have learned that it is difficult to make predictions during single pandemics,” he said.