Analyst values Apple at US$1trn – that’s US$1,000,000,000,000

24 Mar 2015

A US analyst has added a few zeros onto what we all presume Apple is valued at, claiming that by year’s end, following the release of the Apple Watch, the consumer tech giant will be worth US$1trn.

Brian White, an analyst with Cantor Fitzgerald, has consistently rated Apple highly, however yesterday he increased his price target significantly, bringing the new valuation.

“Next month, Apple will enter its first new product category in five years, while media reports over the past several weeks have highlighted potential new areas of future innovation,” says White. “Also, we believe Apple’s iPhone portfolio and position in China have never been stronger.”

“Finally, Apple has shown its commitment to returning cash to shareholders, and we expect more in April. We believe the combination of these forces will drive the market to reward Apple’s stock.”

Big, big numbers

Figures as high as one trillion are far to hard to fully grasp, but it would essentially place Apple 16th in the World Bank’s GDP ratings of countries, dwarfing the Indonesia, Turkey, the Netherland and Saudi Arabia, amongst many many more.

As Forbes points out, all of the gold ever mined in history equates to US$8.5trn, Apple would represent about 12pc of that figure.

It would match the total military budget of the US, China, Russia and Saudi Arabia combined – the top for spenders in the world – with room to spare, according to the Stockholm International Peace Research Institute.

According to the Guardian, White predicts 25m Apple Watches being sold in the 2016 financial year, raking in almost US$12bn.

“White also predicted that Apple’s much-talked-about electronic car project could be a more than US$500m opportunity.”

Apple’s profitability is becoming pretty legendary. Last month it transpired that it represents the vast majority of all profits in the smartphone selling business which, considering the plethora of competitors out there, is amazing.

Golden apple image, via Shutterstock

Gordon Hunt was a journalist with Silicon Republic