'A Year From Now We Are Looking Apple At A Trillion Dollar' : FBR Capital Markets - Apple (NASDAQ:AAPL)

Shares of Apple Inc. AAPL have receded a bit from the highs it reached when the company released phenomenal first-quarter numbers.

Daniel Ives from FBR Capital Markets was on CNBC Monday to discuss the outlook for Apple's stock and when the company might cross the $1 billion market-cap mark.

The Outlook

Ives is bullish on Apple. According to him, China is the new growth market for U.S.; it will be Apple's success in China that will determine the company's fortune going forward.

"I think what's going to happen is we are going to go in the developer conference in June," he said. "Ultimately, there's going to be some good things in terms of an iPad refresh, Apple TV, as well as more information on the Apple Watch.

"But there's something I think we do need to sort of see – investors have comfort and have confidence in this Apple Watch, in the wearables, and I think that's really the key in terms of hitting that 20 million number by calendar '15."

$1 Trillion

He continued, "So, in the near term, you sort of see the stock stagnate, worries about an

iPhone 6

hangover, and then you start to come through. And ultimately, I think, it's almost near term, I view this as a speed bump or a stagnant period, before we make that jump toward the trillion."

Ives was asked when he sees Apple crossing the $1 trillion market-capitalization mark. He replied, "I think a year from now we are looking at a trillion dollars."

Apple Watch's Impact

On whether Apple Watch will have an impact on the bottom line, Ives said, "In terms of the actual math, it's not necessarily changing the model near term, but it's so key because wearables and the Watch is really about this next generation.

"We think that's 8-10 percent of revenue by fiscal '17.” Ives concluded.

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