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Gene Munster: Apple Can Go Higher Than $700 Billion

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Gene Munster: Apple Can Go Higher Than $700 Billion
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Piper Jaffray Managing Director and Senior Research Analyst Gene Munster said during an interview with Benzinga's #PreMarket Prep that he believes Apple Inc.'s (NASDAQ: AAPL) run can continue.

"I think it can and for two big reasons," said Munster.

"First, the addressable market has shifted. It's probably bigger than what most investors think. Typically Apple, when they launch a new product, their market share goes up and it declines right away," he explained.

"I think this time, given the fact that they have screen sizes that compete (finally) with the larger form factors, which are more popular, that could allow them to maintain their market share or not lose as much market share."

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1% = 15 Million

Munster provided some interesting statistics during his interview last Friday.

"Every one percent market share gain that they have -- and right now they have about 20 percent market share -- adds 15 million units," said Munster, referring to iPhone sales. "That would increase their overall units by about seven percent."

He said that the key takeaway message is that if investors think the iPhone is more competitive because of the bigger screen, they should be optimistic about market share gains.

That could have "some wicked positive impact on the model," he said.

Phase Two

iPhone growth is phase one. Phase two involves a cornucopia of other products.

"Obviously you have the watch event," said Munster. "[It's] going to take some time for the watch to get some momentum."

Beyond that, Munster speculated that there would be something that replaces the phone entirely.

"And then you get self-driving cars and the television, so there are catalysts left with Apple," he said. "Despite the massive market cap, there are some meaningful reasons why the numbers can move higher."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Latest Ratings for AAPL

DateFirmActionFromTo
Sep 2017PiperJaffrayMaintainsOverweightOverweight
Sep 2017Morgan StanleyMaintainsOverweight
Sep 2017NomuraMaintainsBuy

View More Analyst Ratings for AAPL
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Posted-In: Apple Car Apple Watch Gene Munster iCarAnalyst Color Exclusives Analyst Ratings Tech Best of Benzinga

 

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