The recent note to investors from Gene Munster, Senior Research Analyst for Piper Jaffray, predicts Apple's provocative future.
The well-reputed analyst raised his 12 month price target for Apple's stocks at $910 and he also upped the estimates for iPhone sales in the second quarter of this year to 33 million units. What caught everybody's attention was the prediction that Apple would be the first $1 trillion company in the next couple of years.
The previous record in market capitalization of a public company is held by the rival Microsoft, which reached $619 billion in 1999.
Currently, Apple's market capitalization is $576.79 billion and the Cupertino-based company will be able to get more money from its high-priced stocks. The funds invested in US tech companies are expected to grow in the next few years.
Also, Apple will have to spike its sales to reach the target suggested by Gene Munster.
The analyst believes that Apple would move more aggressively into competitor's turf. "The companies we consider to be the 10 most relevant competitors to Apple represent nearly $1 trillion in market cap today. We believe 20% of that value, or ~$200 billion could shift to Apple through 2014," writes Gene Munster.
source: CNN Fortune