Apple can reach a trillion-dollar valuation - analysts

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The market capitalization of Apple reached USD700 billion last summer. Analysts said attaining a trillion-dollar valuation would not be impossible for the company even if its stock dropped by 40% from last year.

Apple's online App Store including its retail platform would continue to be the company's advantage. Analysts said the smartphone and tablet market are still young. The opportunity to help the market mature would present chances to generate new income for the tech giant. Furthermore, with over USD140 billion in cash and an average of USD10 billion in revenues through the first three quartiles of Apple's present fiscal year, the Cupertino, California-based corporation could comfortably invest USD200 billion. The money could be used in research and development, acquisitions and marketplace creation which would secure Apple's future.

Analysts said Apple's financial resources would allow it to do anything. Apple's advantages would also prevent it from experiencing Microsoft's fate. In 1999, Microsoft recorded its highest point of USD620 billion. Today, the company's value is only USD264 billion.

Tags
Apple Inc, Microsoft, Smartphone market

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