Apple Inc. (NASDAQ:AAPL) is shooting for the stars with its growth in 2014. The stock prices went up by more than 45% in this year and it also registered a very successful iPhone 6 and iPhone 6 plus launch, with over 10 million units sold in the first weekend after launch. This tech giant is currently valued at a market cap of just under $700 billion, highest in the world till date. Many believe that Apple Inc. (NASDAQ:AAPL) has the potential to become the world’s first trillion dollar company. Re/Code Managing Editor, Edmund Lee is one of them and he talked on CNBC about Apple’s ecosystem and way it helps Apple to grow.
“I think if you bet on one, this will be the one to do that,” Lee said that Apple Inc. (NASDAQ:AAPL) can become a trillion dollar company.
He believes that Apple Inc. (NASDAQ:AAPL) is not just a hardware maker. Of course, they make iPhones, tablets and computer, be he believes that they design the products in an ecosystem. Lee thinks that if a consumer buys one of the products that create the need for other products in the ecosystem as well, which makes it very easy for Apple to sell all of its products. He feels that iPhone has become the Trojan horse for other Apple products.
Lee added that the new iPhones might sell like hot cakes during the holiday season, which might add up much more to the company. In the Apple Inc. (NASDAQ:AAPL) ecosystem, tablet sales has started dropping in the last few quarters and Lee feels that introduction of larger screen iPhones has made the tablet product redundant and people are not seeing the benefit of having tablets when they have the new large screen iPhones. Lee talked about Apple Inc. (NASDAQ:AAPL)’s new software which connects all Apple devices from a single device, which compels the users to have all the Apple devices.
Lee also talked about the new Apple Watch and he pointed that it doesn’t fall under the must have category.
“The Watch is going to be a tougher one, because it doesn’t seem like its going to be as much of a must have device. You need phones these days, everyone is going to have one, be it a Apple phone, great. The Apple Watch, […] Its just a fancy gimmicky things versus something that everyone’s going to want,” Lee said.
Apple Inc. (NASDAQ:AAPL) is well known for creating its own markets, like creating music market with iPods, when the trend was totally different. So Apple Inc. (NASDAQ:AAPL) might do it again with Smartwatches as well. But Lee thinks that there is very little knowledge about Apple Watch to tell whether it might create a new market on its own or not.
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