In 2018, Apple Inc. became the first U.S.-based company to hit a market value of $1 trillion, over 40 years after it was co-founded by Steve Jobs in a Silicon Valley garage, according to a report CNBC at the time. In that same year, the company fell below its recently obtained $1 trillion market cap after reporting its fourth-quarter earnings, as previously reported by the Inquisitr .
However, according to a new report from 9to5Mac , it’s possible that the tech giant could reclaim its status as a trillion-dollar company in 2019 with the launch of a media bundle. Morgan Stanley analyst Katy Huberty believes that if Apple successfully launches a so-called “media bundle,” that features a music service, television streaming, and news subscription, the company will likely see significant growth “as the bank currently targets AAPL’s 12-month share price at $211.”
To put things into perspective, on Friday, February 1, AAPL closed at a little over $166 with a $785 billion market cap. When the company hit the $1 trillion mark for the first time, shares had a value of around $206 each.
According to the report, the bank estimates that a media bundle could add 2 percent annually to Apple’s services revenue through 2025 “helping to drive a 5 percent revenue and 12 percent earnings per share (EPS) annual growth rate through 2023”.
“After repurchasing $8.8 billion of stock in the December quarter, below the prior $20 billion run-rate, we see a more active buyback program helping re-rate shares, as investors better understand the stabilization path for iPhone and impact of new services,” Huberty added.
Apple can reach $1 trillion again if it launches a “media bundle” in 2019, says Morgan Stanley https://t.co/BAKnlGmzK2 by @AllegroTechie pic.twitter.com/XHXcTq1Ale
— 9to5Mac (@9to5mac) February 3, 2019
As for the alleged media bundle that could possibly breathe life back into the company, there have been rumors of it swirling around for a while. Last year, it was reported that Apple was considering an all-in-one subscription service for music, TV, and news, according to predictions made by the Information .
Those rumors were fueled even more when Apple purchased the digital magazine service Texture, which is being considered as a $9.99 a month “Netflix for magazines,” according to Bloomberg . However, publishers have been reportedly hesitant to jump on board with Apple’s plan to flip the magazine service into a paid news subscription service.
Huberty went on to predict growth stabilization for the company in the future with iPhone sales.
“iPhone replacement cycles now stand at mature levels suggesting a stabilization of growth is in the cards over the next year. [Apple’s] commentary that demand improved in January is similarly encouraging,” she said.