Apple Can Hit $3 Trillion on Services Shift, Morgan Stanley Says

Apple Inc.’s pivot to a subscription-like model creates a clear path to a market capitalization of more than $3 trillion, according to Morgan Stanley.

While the market still tends to value the iPhone maker as a hardware company, shifting to a “lifetime value” based approach — which takes into account recurring revenues from services — suggests long-term upside to over $200 per share, or more than $3 trillion in market value, Morgan Stanley analysts wrote in a note. Apple shares closed at $153 on Wednesday.

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