Apple’s stock has continued to rise at an unprecedented rate for the past few months. In fact well respected Piper Jaffrey analyst Gene Munster has predicted that AAPL stock will reach the $1,000 dollar mark by 2014. If the cost to buy a single share of Apple stock reaches $1000 that will make Cupertino the first company in the history of business to have a market capitalization of over a trillion dollars.
Just this morning Munster raised his 12 month price-target for AAPL stock from $718 to $910.
As it has for the last five years, we can expect the iPhone to be the driving force behind Apple’s growth going forward. According to Munster’s projections he sees 70 percent of 2 year-old iPhone owners upgrading every quarter.
”That suggests 33% of iPhone’s in a given quarter through 2015 are ‘in the bag,’” Munster said. “We believe this is conservative given it expects an average iPhone life of 24 months.”
Apple will be announcing their 2012 first quarter earnings to shareholders and press on April 24th, Munster predicts that Apple will announce iPhone sales in excess of 33 million devices with an average selling price of $630. That’s a jump from his previous prediction of 30 million.
We believe demand remains strong for the iPhone 4s based on global store checks and momentum from the 3rd-gen iPadlaunch,” Munster said.
If you think the price of Apple stock is high now I wonder what you’ll be saying if it reaches a $1000 bucks in 2014. No matter how high Apple’s stock goes I think it’s safe to say that it is the most profitable company ever started out of someone’s garage.