IT House July 22 news, Apple’s market value once reached $3 trillion on January 3 this year, but since then, with the overall decline in technology stocks, Apple’s stock price has fallen 16%, Apple’s stock price closed higher on Thursday 1.51%, at $155.35, with a market capitalization of $2.5 trillion.
However, Morgan Stanley said it believes that in the long term,Apple shifts from pure hardware company to subscription-based business model, will provide a clear path for the company’s market value back to $3 trillion. The bank’s analyst Erik Woodring gave Apple an “overweight” rating.
IT House understands that although the market still tends to iPhone The manufacturer views it as a hardware company, but moving to a “lifetime value”-based approach — which takes recurring revenue from software services into account — means the company will be worth more than $200 per share in the long run. U.S. dollar, with a market capitalization of more than $3 trillion.
“Apple’s business model is shifting from maximizing hardware shipment growth to maximizing app installed base profitability,” wrote Morgan Stanley analysts led by Woodring.Apple increasingly discloses service revenue and app install base, and no longer reports iPhone sales, evidence of the shift.
Woodring said the value model assumes that Apple users will spend $2 a day on an Apple product or service, a number that U.S. iPhone users have already achieved. The current share price implies a significant discount to the company’s valuation compared to other tech platforms and software-as-a-service businesses, he said.
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