"A million dollars isn't cool. You know what's cool? A billion trillion dollars."
If there's one company that will hit a trillion dollar market cap, it will be Apple, according to USA Today. Apple could do it in the next three years. USA Today came up with Apple's trillion dollar market cap based on its five-year geometric mean average increase of 59% a year. So given today's market value of about $310 billion, if Apple continues to increase in value by 59% each year, in 2014, we'll have the first trillion dollar company. How huge is that? The most valuable company ever was Microsoft in 2000. That year it hit a $604 billion market cap.
So, could Apple beat Microsoft's value in its best year by more than 65%? My money is on Apple (and has been since November of 2002 when I started buying the stock). The way I look at it is that Apple has its hands in three primary markets: computers, smartphones and tablets. The first market is fairly maxed out -- there's not a lot of room for the market as a whole to grow -- but since Apple only has around 10% of that market, it still has lots of space to grow in it. The inverse is true for smartphones and tablets. Apple is a key player in both those markets, but each of those markets still has decades of growth in front of them, which means that even if Apple doesn't hold a lead spot, it still has tremendous room for the growth of its products in those markets.
Continue reading Apple will be the first $1 trillion company
Apple will be the first $1 trillion company originally appeared on TUAW on Thu, 14 Apr 2011 19:00:00 EST. Please see our terms for use of feeds.
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