Morgan Stanley tips Apple to be first to $1 trillion

Morgan Stanley yesterday became the first Wall Street bank to tip Apple to hit $1 trillion.

The iPhone maker is worth around $820 billion on Nasdaq, but the investment banking giant predicted it would be the first $1 trillion company in 12-18 months.

Apple’s chief executive Tim Cook unveiled the pricier iPhone 8 and 8 Plus last week, as well as the premium $999 iPhone X.

Morgan Stanley said pricier iPhones would boost sales, as Apple is an “aspirational brand”.

“The company escapes the typical trend of declining prices that drives demand for other devices,” said analyst Katy Huberty.

“In fact, demand for the iPhone is directly correlated to the direction of average selling prices — higher prices, higher demand and vice versa.”