Apple returned to that market-cap milestone after revealing its new iPhones and cheap streaming service.
Apple Inc. crossed the threshold required to reclaim its status as a trillion-dollar company in Wednesday trading, hitting that level for the first time since early November of last year.
Apple shares were up 2.6% in midday trading Wednesday and need to remain at or above $221.28 to secure trillion-dollar status through the close. Analysts expect the company’s pricing moves to make its ecosystem more affordable, though they were divided on whether this approach will have a meaningful impact on the company’s financials in the months to come.
“We don’t view any of the new subscription products as remotely meaningful to earnings on a stand-alone basis,” he wrote in a note to clients. “Services are not all created equal and investors should keep in mind the margin profile of each offerings. In our view, even if video is a wild success for Apple , it wouldn’t move long-term EPS more than 0.5%.
“Our research shows that a second product lowers churn by 25% and a third product lowers it by an additional 10%,” Martin said in a research note. “We love Apple’s focus on Watch and iPad as add-on products which lower churn. Arcade and AppleTV+ adoption add disincentives to churn.
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