Apple’s Market Cap At $750 cCuld Just Surge Higher: 5 Reasons Justifying The Same

February 21, 2015

Latest reports have shown that Apple—the gadget stalwart—has been effectively poaching working staff from rival battery and car manufacturers, justifying the 2020 target for a purported electric car. As we may put, the Cupertino organization looks firm towards setting up the needed framework on adding to the software systems, hybrid technology and even the car based batteries.

If this isn’t a reason enough for the Apple stock prices to go higher, then these 5 assertions might just help the market capital run berserk, in a positive direction as investors have readily shown interest by gobbling up a larger proportion of shares, trouncing the market with a 17 percent uptick.

As speculated by Jim Suva, these reasons would put the ball in Apple’s court, mainly for an increased market capital, well above the existing mark of $ 750:

Handsets are Getting Upgraded: Verizon and other organizations have been shelling out deals to the existing customer base, allowing them to upgrade the Smartphones at a slashed rate. The iPhone 6 and 6 Plus have been hugely popular in this regard with over 34, 000 sales each hour. Apple has been beefing up the platter every now and then with biometric authentication, Apple Pay, better battery life and much more, mainly for the adding the existing customer flock. Citi predicts a 200 million sales count for the latest Smartphones in 2015; a staggering figure isn’t it!
Cheaper Stocks: With a P/E restricted to the count of 12, Apple is doing quite well in terms of market capitalization. The company is on its way towards raising the shareholder value besides boosting the dividend which is to be handed over as perks.
Rising Margins: Smartphone memories have increased and so has the user preferences towards those additional gigabytes. Apple’s gross margin gain can be analyzed by the fact that the company needs only 20 percent of revenue for adding in the extra space in comparison to the 100 percent shelled out by the customer who is making the purchase. This is certainly a pretty profitable shift.
Passbook and Apple Pay-The Potent Tools: Citi is quite optimistic regarding the potential of the Passbook which is deemed as the biggest digital wallet. Some hotels are looking to add these as keys to the rooms, further spreading the knowhow and even the credibility.
Consumer Brand—Not a Compulsion anymore: Apple has been willingly making newer tractions into corporate hierarchy with some bigger investments and innovative ideas which might be taking shape in the present decade.

These are some of the reasons which are expected to be in line with the latest partnerships like that with IBM, allowing companies to make better applications and drive in a lot of power into the expanding entrepreneurial hierarchy.

The share gain potential is immense and so is the road for this California based firm.

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