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Apple to Become America's First $1 Trillion Company

The fact that Apple is a huge success is no secret. The tech giant has been through some impressive changes throughout the years and in 2015 it has become the most successful it has ever been.

In fact, Apple has come long way, if we remember that about 18 years ago it was close to bankruptcy.
However, Steve Jobs, Apple's late CEO, managed to transform the company with innovative products, including the iPhone and the iPod, that people just loved. Moreover, these releases managed to change the way we see technology nowadays.

When Tim Cook took over from Steve Jobs in the role of Apple's CEO, everyone feared that the famous company won't be able to remain the tech empire that Steve Jobs built.

Without a doubt, Apple has suffered a change since Steve Jobs, becoming even more successful. The tech giant almost doubled its earnings and profits thanks to the spectacular sales of the latest generation iPhone.

Now, analysts seem to believe that Apple will become the first company in America to be worth $1 trillion.

Actually, these expectations are linked to Apple's entrance into the world of wearable technology, with the release of the Apple Watch.

The tech giant started to accept pre-orders for the Apple Watch last week. In a matter of a few hours, the famous company's product sold out, showing an amazing interest from customers for the latest Apple product.

While some claimed that Apple sold around 1 million devices, other analysts alleged that the famous company sold about 2.5 million Apple Watches. What is certain is that Apple has already pushed orders until June.

The success of the Apple Watch is expected to make Apple the world's first $1 trillion company, at least this is what FBR Capital Markets analyst Daniel Ives claimed in a research note recently published.

The analyst alleged that Apple's stock will go to $185, although it currently is listed at $125. The analyst said that the most powerful tool in the company's future is the iOS mobile operating system.

In the future, developers are expected to launch millions of other new, functional apps, which will make Apple devices even more useful for customers and also for businesses.

Currently, Apple is valued at $728 billion, which means that it already is the most valuable company in the world. For instance, Microsoft is only valued at $339, so Apple's performance already is amazing.

However, what analysts seem to believe is that the new Apple Watch will raise the company's value much more.

The Apple Watch to become Apple's most profitable product ever.

There many theories out there about the Apple Watch and its performance on the market.

The Apple Watch is an all-new product, the first wearable device and the first product that the famous company launches in years.

The new product is expected to be successful, but the question is exactly how great it will do on the market.

How many Apple Watches were preordered is something yet unknown, but the fact that Apple pushed delivery until the summer might indicate some serious issues within the company's supply chain.

Supply chain issues can turn out affecting the company's ability to meet the demand and might even turn away customers and their intention to buy the new product.

Apple customers are used to wait to get a brand new Apple device, but maybe about two months would be too much.

Well, not even the fact that Apple may face some supply chain issues is certain. Some analysts seem to believe that the delays in shipping are part of Apple's plan.

Market researcher Carl Howe alleged that he created a simple model that "predicts that the initial run of watches was more than 3 million units and will yield Apple Watch revenues of over $2 billion for the first two weeks of sales.

The analyst went on to add that the sale figures have definitely been smaller than the ones of the iPhone 6, but bigger than the ones of every other smartwatch released on the market. Howe also claimed that the Apple Watch Sport will lead the sales of the new device.

My belief is that the Apple Watch product line will become Apple’s most profitable product line ever, with gross margins exceeding 60 percent. Why? Because the core electronics modules in the expensive models are the same ones used in the Sport models, and they just don’t cost that much, the analyst said.
The market has evolved quite curious with regard to the interest offered to the new product. For instance, in China people preferred the most expensive product that Apple has ever launched. The famous company sold out of the $20,000 gold Apple Watch Edition in less than an hour.

Howe also concluded that the delay that Apple has in shipping is just a method that the company is using to test the market and find out which of the Apple Watch model customers prefer.
Apple to Become America's First $1 Trillion Company Reviewed by Mike Beasley on 3:20 PM Rating: 5
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