There was a record close on Apple shares as they think that the next iPhone will resurge sales and the services business might also grow.
The stock became the highest on the record as it climbed about 1% to $133.29 at the close in New York on Monday. Apple’s increase valued it at $699B as it became the highly capitalized company in the world. Alphabet is next in line ($573B), according to Bloomberg data.
There might be another gain in Apple’s shares next year, according to the analysts. Their target price for 12 months is $142.58.
In April 2015, there was an intraday peak set at $134.54 shares. Before that, the closing record was about $133 in that year’s February. Then, there was a stock drop for a year due to the smartphone industry growth waning and beyond the iPhone prospects of Apple. But with the company reporting iPhone sales, which were stronger than expected during the holiday quarter, made the stock reach a new high.
Apple attracted new customers with its latest iPhone 7, but it failed to convince their existing customers to upgrade. According to analysts, the next iPhone might get a substantial upgrade and this trend bodes well for it.
BTIG analyst, Walter Piecyk said that this is just a continuation of rally after the Q1’s report and the guidance of Q2, which is providing the investors with a bridge to next iPhone, which is getting many excited.
The equity market also buoyed the stock as the benchmarks of US ended the day with records. The Industrial Average of Dow Jones that also includes Apple climbed more than 20400. This was the first time it did that.
Apple’s iPhone has more users for their subscriptions, services and softwares like iCloud and Apple Music. In recent period, the revenue of services grew 18% to $7.2B and the company wants to double their total to more than $50B by 2021.
Even after all this, Apple has been struggling to expand their business into other sectors, which are big enough to compete with a company that has $200B in revenue annually. Their car project, which was secretive, had a slow start, and also their smartwatch didn’t match the iPhone success even if it was popular.
But Apple can’t just rely on their smartphones alone in the future. Let’s hope the smartphone giant does some real innovation soon to keep the investors interested.