Apple will be valued at $1 trillion by 2014, when its stock will be trading around $1,000 a share, up from just shy of $625 now, says Gene Munster, managing director and senior research analyst at Piper Jaffray.
The company will grow on mobile device demand, based on the assumption that out of 1.6 billion total units expected to hit the market within two years, Apple will account for at least 400 million.
"I know that when you look at the $1,000 price tag, it looks like a big number. But when you look back and do the math … it’s not that hard to get there," Munster tells CNBC, pointing out share prices have doubled within a year.
A Piper Jaffray survey finds that up to 94 percent of iPhone users across the U.S. claim they will buy another version of the popular handheld.
That translates to 45 percent of sales stemming from upgrades every year.
With competitors like RIM losing market share, Android appears to be the only threat.
"It’s going to be a two-horse race between Apple and Android phones built on Samsung," says Munster.
Other experts agree that Apple is on its way to becoming a $1 trillion company.
"Apple is growing its earnings vastly faster than the market as a whole," Henry Blodget, a former equities analyst and CEO of Business Insider, writes in a recent Yahoo’s Daily Ticker column.
Furthermore, Apple's products themselves have room to grow.
"Macs, for example, still make up only about 10 percent of PC sales worldwide. iPhones, meanwhile, are only about 20 percent of the exploding global smartphone market, which itself is growing extremely rapidly. And Apple dominates the tablet market, which is still in its infancy," Blodget adds.
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