Can Apple’s coming “supercycle” actually deliver? Investors already have bet nearly $200 billion that it can.
That is how much Apple’s market value has risen just since the first of the year. And, while the company has other appealing qualities—such as a growing high-margin services business and a swelling cash hoard—the iPhone remains its primary profit driver. Hopes are high for the next one coming out later this year after the last two versions failed to do much to move the needle.
The next iPhone is still likely months away, but Apple’s annual developers’ conference next week will give some hints of what the new device will bring, as it typically previews the next version of the iOS mobile operating system. Investors are already giddy; Apple’s stock is up 33% so far this year, pushing the company’s market value past $800 billion. Since 2010, Apple’s stock has averaged an 11% gain between the start of the year and its annual summer conference.
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