Apple: $300 is my new 12-month price target

“After reading the Q2 earnings transcript, I am going to make another bold projection that AAPL takes out their previous highs of $233.47 per share and surpasses the $300 mark by this time next year,” Steven Fiorillo writes for Seeking Alpha. “AAPL is no longer just a phone company who makes other products. Their business is rounding out, and Services is going to be a treasure trove of untapped potential… I believe this is just the beginning for Services as the Apple ecosystem grows and entertainment content continues its shift to service-based platforms.”

“Apple’s two newest business segments are growing at phenomenal rates. The Wearables, Home and Accessories segment increased its revenue by almost $1.2 billion YOY for an increase of 30.05%, while Services grew by $1.6 billion or 16.24%,” Fiorillo writes. “I am very bullish on both business units as I believe they will continue to grow and help make up for the decrease in iPhone sales.”

“Services has the potential to become Apple’s largest business segment providing the company with piles of reoccurring revenue,” Fiorillo writes. “Subscriptions increased to 390 million paid, which was an increase of 30 million this quarter… How many people do you know who have a smartphone without 4G LTE? I can’t name a single person I know who is still on 3G. The introduction of 5G products will start a cycle of replacing older devices. I believe that this positively impacts iPhone sales as many people such as myself are waiting to upgrade until 5G products hit the market. This powerful combination could reverse the recent trends in revenue from the iPhone business segment.”

Read more in the full article here.

MacDailyNews Take: Beyond the phenomenal growth in Service, a true super cycle – the 5G iPhone Super Cycle – looms ahead of Apple Glasses while other new and updated products are on the way! The future is exceedingly bright for Apple Inc.!