Apple bull expects iPhone maker to hit $3 trillion market cap in 2022

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Various models of the Apple Inc. iPad astatine the company's Yeouido store during its opening successful Seoul, South Korea, connected Friday, Feb. 26, 2021.

Jean Chung | Bloomberg | Getty Images

Apple could deed a $3 trillion marketplace capitalization successful 2022, according to Wedbush expert Dan Ives, who is bullish connected the tech giant.

The iPhone maker's shares are down astir 5% year-to-date. Earlier this year, investors dumped the company's stocks pursuing a historical December quarter.

Apple is the world's astir invaluable institution with a existent marketplace headdress of astir $2.1 trillion. It crossed the archetypal trillion successful 2018 and the $2 trillion people successful 2020. Analysts, including Ives, person antecedently talked astir Apple's roadmap to the grounds $3 trillion mark.

"We deliberation yet 12 to 18 months from now," Ives told CNBC's "Street Signs Asia" connected Tuesday erstwhile asked astir a imaginable timeline to the adjacent milestone.

"If you look astatine the innovation, if you look astatine the supercycle playing retired successful the services concern close now, I judge this is conscionable benignant of the adjacent signifier of growth," Ives said, adding it is acceptable to beryllium to skeptics that Apple remains focused connected innovation.

In precocious April, Ives accrued Apple's terms people from $175 a stock to $185, maintaining an outperform standing connected the stock. Apple's shares closed astatine $125.90 per stock during mean trading hours connected Monday.

Software services

Apple has been viewed arsenic a hardware institution for years portion CEO Tim Cook pushed the communicative that the firm's iOS operating strategy has a services ecosystem — built astir a basal of much than 1 cardinal instrumentality users — that's a large portion of its future.

But the premix of hardware and bundle has evolved and successful 2020, the tech elephantine received its biggest endorsement from Wall Street and investors.

Ives values Apple's bundle services concern astatine astir $1 trillion astatine the moment, and expects it to summation to astir $1.5 trillion successful bid for the company's marketplace worth to deed $3 trillion.

"They person enactment an robust obstruction astir their instal base, proceed to monetize it, and the bears and skeptics volition proceed to uncertainty them," helium said.

He said Apple continues to "prove them wrong." He added: "Which is wherefore erstwhile I look astir the corner, contempt this digestion period, I spot a $3 trillion marketplace headdress (in) 2022."

At its Worldwide Developers Conference, oregon WWDC, connected Monday, the company showed disconnected a slew of caller updates for Apple's large products. It included the iOS 15 — the latest mentation of the iPhone operating system.

New iPhones are besides expected aboriginal this year, portion an Apple Car is besides successful the works.

Ives said that astatine the moment, Apple is laying the instauration for the adjacent signifier of maturation wherever bundle and services play important roles.

Risks to the $3 trillion target

There are respective imaginable risks that could hinder Apple from reaching the historical $3 trillion marketplace capitalization, according to Ives.

They see a tribunal conflict with Epic Games, shaper of the fashionable video crippled Fortnite, wherever Cook faced crisp questioning from the justice past month.

Last year, Apple removed Fortnite from its iPhone App Store, saying that the crippled violated its guidelines for its bundle organisation platform. Epic Games responded by filing a lawsuit within hours, accusing Apple of anti-competitive behavior. Apple past filed counterclaims and responses, seeking damages for Epic Games' breach of contract.

Ives besides pointed to increasing regulatory scrutiny astir the world. The European Commission said successful April that the iPhone shaper "abused its ascendant position" successful the organisation of euphony streaming apps done its Apps Store.

CNBC's Eric Rosenbaum contributed to this report.