‎Apple Scales Peak

Apple recently achieved the $300-billion market cap milestone. Currently Apple ‎is second only to Exxon-Mobil now valued at about $377-billion.‎

The estimates are based on iPad sales projections of 10 million and 12 million this ‎year, as against 7.5 million realized at the end of last quarter. Apple has about 40 ‎percent gross margin on iPad sales. iPad has about 30 percent gross margin on ‎application sales and 10 percent margin on song sales. Apple is selling up to 30 ‎million applications every day. Sale of iPads would go up-to 200-million by 2013.‎

Two-hundred million iPads with a 30 percent margin grows into a healthy $30 ‎billion in gross profits. If Apple sold 100 million apps per day, with each app, on ‎average, fetching about 30 cents. At 30 percent margins on each app,would be 9 ‎cents per app. It sums up-to $9 million in gross profits per day or roughly $3.5 ‎billion per year in gross profits on app sales in 2013. With $35 billion in gross ‎profits already without taking into account iPhone, iPod sales, song sales (10 ‎cent margin per song), video sales, and Mac sales. The iPhone is also available on ‎Verizon, further accelerating sales.‎

With these projections, by 2013, total gross profits for Apple could amount to ‎‎$80 billion (presently $25 billion). Cash flow at about 75 percent would be about ‎‎$60 billion. A 20 times multiple on results in a market cap of $1.2 trillion or a ‎share price of about $1200 by 2013.‎