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| Apple's market value could reach $3 trillion in 2022 |
Dan Ives, an analyst at Wedbush Securities, said Apple's market value could reach $3 trillion by 2022.
So far this year, the iPhone maker's share price is down 5%. After the historic December quarter, investors sold shares of the company earlier this year.
Apple is the most valuable company in the world with a current market value of about $2.1 trillion.
In 2018 and 2020, it exceeded a trillion dollars and in 2020 it reached 2 trillion dollars. Analysts, including Ives, discussed Apple's roadmap for a record $3,000 billion.
"We think it will be 12 to 18 months from now," Ives said when asked about a possible timeline for the next step.
"When you look at innovation and the superbikes that are in service now, I think that's the next level of growth, and Apple will prove to skeptics that it's still focused on innovation," he added.
Software Service:
For many years, Apple was known as a computer company. Although CEO Tim Cook claims that the company's iOS operating system has an ecosystem of service supported by more than one billion device users. It's an important part of his future.
But the mix of hardware and software has evolved. The tech giant received the most support from Wall Street and investors in 2020.
Ives estimates that Apple's software services business is now $1,000 billion. It is set to reach around $1.5 trillion before the company's market capitalization reaches $3 trillion.
At the Worldwide Developers Conference (WWDC) on Monday, the company introduced a number of new updates to its flagship product. It includes iOS 15, the latest version of the iPhone operating system.
The new iPhone is supposed to be released on the market this year. Although the company also developed the Apple Car.
Apple is currently laying the groundwork for the next stage of growth, in which software and services play an important role.
Apple risks:
There are many potential risks that could prevent Apple from reaching a historical market value of $3 trillion.
One such risk is a legal battle with Epic Games, the maker of the popular video game Fortnite, which a judge last month challenged Cook.
Apple pulled Fortnite from the App Store last year, claiming that the game violated the guidelines of its software distribution platform.
Epic Games responded with legal action within hours, accusing Apple of anti-competitive behaviour.
Apple then filed a counterclaim seeking damages for Epic Games' breach of contract.
Increased regulatory oversight around the world can prevent a company from achieving this market value.
The European Union Commission announced in April that Apple had abused its dominant position by selling music-streaming apps through its App Store.