Here is why Apple stocks will reach $110
Apple Inc.(AAPL) seems to be one of the few tech giants who is seemingly unscathed by domestic and international troubles. While Microsoft deals with Chinese authorities, and Google keeps busy under pressure of European court’s ruling, Apple is thriving in what seems to be the dawn of a golden age.
According to RBC Capital market analyst Amit Daryanani, there are several important factors boosting confidence in Apple’s profitability, and encourage RBC Capital to raise its target from $100 to $110.
Emerging markets penetration is not only Apple’s core business model, but also a major influencer in how Apple is expected to perform in the next several years. The iPhone 6, the iWatch and a foreseeable future of increasingly diverse and sophisticated product lines, are what makes Apple an innovation mill, in a market that simply can’t afford not to top itself.
Innovation requires sizable investments. Apple, comfortably sitting on $164 Billion dollars in cash, is a company that is not afraid to innovate.
Surprisingly, the iPad has also been considered a growth factor, in spite of what analysts have been seen on a consumer level, the iPad remains a favorite in the business world, especially in retail.
China: Apple’s ace in the hole.
As mockingly as it may seem, when thinking of the kind of trouble Microsoft is going through these days, China Mobile 4G network is set to become one of Apple’s major assets. According to this year’s analysis of the Chinese mobile consumers who invested in smartphones above the $500 price range, 80% of them are iPhone users: a huge win for Apple’s higher-end consumer target.