APPL $3T valuation tantalizingly close
Apple became the first publicly traded company to hit a trillion-dollar market capitalization (the share price multiplied by the number of shares) back in 2018.
Two years later, in 2020, it was also the first public company to reach a $2T market cap.
Coming up on three years after that, the company’s share price has seen it sitting tantalizingly close to a $3T valuation for some weeks now.
But while the announcement of Vision Pro was a notable one, representing the company’s first move into a completely new market sector since the Apple Watch back in 2015, Bloomberg‘s Mark Gurman doesn’t see this as a significant factor.
At least in the short term, the Vision Pro will only appeal to the earliest of early adopters — people like software developers, Apple fanatics and mixed-reality zealots. The product has a $3,500 starting price, its underlying technology is still getting refined, and users will have to carry around an external battery pack. Moreover, Apple has yet to spell out a truly compelling reason to use the headset.
Apple itself knows that the headset is going to have a slow start. It’s expecting to sell about 900,000 units in the first year, contributing a few billion dollars in revenue […]
Shareholders know these realities. So it’s certainly not the Vision Pro that has driven Apple to the brink of the $3 trillion mark.
Instead, he cites the ecosystem as the company’s greatest strength from an investor perspective. As we’ve often said, the more deeply you become embedded in it, the harder it is to leave.
Investors may take a passing interest in Vision Pro, but they are likely more interested in the iPhone 15 lineup. This may be less exciting, but analysts are expecting a strong upgrade cycle this year as those who are sitting on older models like the iPhone 11 and 12 may now see a compelling reason to upgrade.