Is Apple A Trillion-Dollar Baby?

Apple (NASDAQ:AAPL) may be falling somewhat to profit-taking on Tuesday after its record highs from the day before, but some analysts are predicting the company is set to get even bigger. Apple’s market valuation reached $623.5 billion on Monday, going past Microsoft’s (NASDAQ:MSFT) 1999 record of $613 billion, and according to Topeka Capital’s Brian White, the iPhone maker could soon become a “trillion-dollar baby.”

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White said that while some analysts had previously “expressed growing concern that Apple would succumb to the $500 billion ‘market cap flu,’ we felt this was a fallacious argument and pointed out that investors should think of Apple’s market cap in terms of ‘trillions’ and not ‘billions.’”

The analyst added that at its peak Microsoft had controlled 90 percent of the PC market operating systems, Intel (NASDAQ:INTC) had over 80 percent of the PC processor market, and Cisco (NASDAQ:CSCO) had over 70 percent share in the networking market. “On the other hand, IDC estimates Apple held just 4.7 percent of the PC market in Q1 and 6.4 percent share in the mobile phone market in Q2, while Apple’s 68 percent Q2 share of the media tablet market speaks to its invention of the category,” he wrote.

According to White, gains from the new iPhone, new versions of the iPad, a rumored Apple TV, and the potential for new distribution deals in China mean that Apple is on its way to “generate the highest annual net income of any publicly traded company ever by at least calendar year 2013.”

Sterne Agee’s Shaw Wu agreed with White’s predictions. “It’s definitely possible,” Wu said of the chance of Apple hitting the trillion-dollar mark in an interview with MarketWatch. “I don’t think they’ll do it within a year, but over the next three to four years, it’s possible.”

Wu added that he thought there was still room to grow for the iPhone in addition to the potential in the PC market. “After all the success they’ve had, if you look at the cellphone business, that’s roughly 8 percent of the mobile-phone business year-to-date,” he said. “Nokia (NYSE:NOK) at its peak owned 40 percent.”

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