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Should you buy Apple stock or has the company run out of growth opportunities? What is my price prediction for Apple in the next years? Read until the end as I reveal my price target for Apple and also what I think will happen in the next couple of days, weeks & months!
~ Warning! Very Very Long Post~
Hello everyone! So, let’s go over some of the latest news on Apple before moving on to some fundamental and technical analysis, predictions and my price target for the stock in the next years.
So, let’s start with the news that Apple will cut the App Store commission in half for small app developers starting in the next days, this will affect developers who earn less than $1M annually from the App Store Sales. This is likely to lead to a small decline in commission revenues for Apple as around 98% of the app developers will qualify for this tax reduction from 30% to 15%, but all these small developers only contribute to about 5% of the estimated $50B in annual revenues from the App Store, so that would be only a $1.25B loss for the company, that is less than half a % of the company’s total net sales in the last fiscal year.
Also, these changes may lead to a potential long-term revenue boost, as it is likely this will lead to an increasing creation of apps which will generate more commissions in return.
Alongside this we also saw the company releasing the new MacBook’s with their first in-house chip, which promises faster video and imaging processing times, with both CPU and GPU performance up to 2 times faster than the latest PC laptop chip using just a fraction of the power consumption, with both of the macbooks promising big improvements in battery life. Apple is also expected to roll out even more in-house chips in future products, as they have started the 2-year breakup with Intel chips.
We also saw Morgan Stanley upgrading their base case to $191 at the end of November, as they have cited record lead times, supply chain forecasts and carriers demand as they expect that the company will sell around 270M iPhone in fiscal year 2021, that’s 50M more than the consensus and almost 30M more than the previous estimate of Morgan Stanley, with an average selling price of 842$, 9% more than the base case, as people tend to chose the more expensive and high tech versions of the lineup in this new 5G cycle.
The 5G super-cycle, which I believe is on the way, and will continue in the next years, as 5G become more available worldwide, could still be the biggest thing coming right away for the company with 5G smartphones expected to surpass 4G sales by 2024, with the average sale price of the 5G phones also coming down, helping them become more popular. This will also be helped by the recent entry to the Indian market, as India will probably become the world biggest country in the next decade, this could be a huge opportunity for Apple to start and take away market-share from their competitors like Samsung and Xiaomi which have the biggest market shares right now.
They also released an update iPad Pro and an all-new iPad Air in September which will also boost sales in this work-from-home environment that will keep the demand very high for this kind of products, just like the Macs. Alongside the increasing demand from the Wearables, Home & Accessories that include Air Pods, Apple TV, Apple Watch, and many more products.
But the biggest reasons I believe Apple is poised for continued growth, is primarily due to its services business, as they start to offer more and more services like the Apple ONE BUNDLE, which include up to 6 services from (Apple Music, Apple TV+, Apple Arcade, Apple News+, the new Apple Fitness+ and the iCloud service) for a pretty reasonable price in my opinion starting from 15$ up to 30$/month, this could be a great option for families and even individuals who use their services a lot.
The latest services, Fitness+ just launched in the past days, and is a direct competitor to the likes of Peloton, as the service is available on the iPhone, iPad or even Apple TV. This also makes consumers buy the Apple Watch which syncs to the other devices to show you different information. The Fitness+ app just on its own is 8$/month or 80$/year which is less expensive than Peloton subscription which charges 13$ or even traditional gyms like Planet Fitness at 10$/month.
I think this will be the fastest growing sector for the company, as this aligns with the new macro trends, as the world is moving more and more to a digital approach to almost everything as consumer preferences, with more & more younger people reaching the point in life when they use these services start to align to this increasing digital approach.
We also shouldn’t forget the Apple Card & Apple Pay service among many others which also seem to gain from the move to digital & contactless payments, as this has been accelerated due to the current situation in the past year.
And one last piece of news, and the most recent one, is that Apple may have fast-tracked the Titan project. The Titan project is targeting a 2024 or 2025 push to develop an electric vehicle with advanced battery technologies, that will deliver significant increases in range at much lower costs than the current technologies while also offering self-driving capabilities.
It’s reported they will not use the same technology as Tesla Full-Self-Driving feature, but will use LIDAR sensors, similar to those that we can find in the latest iPhone 12 PRO.
I think Apple can go 2 ways with this project, they can either use the huge amount of cash the company has to buy another car-maker like Ford, GM or any other car manufacturer expect Tesla and Toyota which do have a big market cap, so that they can fast-track the potential manufacturing of cars, or they can enter into a partnership with big companies like Tesla, Volkswagen or any other car marker to either produce cars or license their technology to this other car-makers which would ultimately and probably have higher margin-returns than the effective manufacturing of cars. Apple’s current overall gross margins stand at 38% vs the 15% average of the world top 10 automakers by market cap, which is significantly lower.
But this Apple Car thing is so far out, and there are so many unknowns, I will not try to predict anything related to this until there is more clarity on the subject.
And last, before moving on to some predictions, here are some of the highlights that we heard from the latest investors conference meeting, as the CEO, Tim Cook expressed optimism ahead with the launch of many new products and services, especially the Home Pod Mini and the new 5G iPhones, as these new iPhones include new LIDAR scanners that greatly improve the camera capabilities, as the iPhone as seen very positive reviews. We also saw the Senior VP and CFO, Luca Maestri give us great outlook for the company as they expect the installed devices base to continue to growth despite already being at an all-time high as they have over 585M paid subscriptions on their platforms and expect this to surpass 600M by the end of 2020.
I also researched and found what products we can see in the near future, with the first half of 2021 bringing new iMacs, the AirPods3 and the iPad Pro, while in the FALL event we will probably get the new iPhone 13 alongside the iPhone SE PLUS and the Watch Series 7 with more products coming later in 2021 or that don’t have an estimated release date like the Air Pods Pro, the Air Tags and the iPad Mini 6.
So, before even starting, you should know that I am bull on Apple but I am willing to hear other opinions so don’t be afraid to leave a comment down below.
I have made some predictions based on the growth rate of the company, the latest plans announced by them and used some estimates. So, keep in mind this are only projections and are calculated by myself, this is not an investment advice and you should do your own research.
This are my 2025 projections for Apple, let’s take a closer look at them, each on their own.
So, in term of revenues, Apple has 5 big sources of income, which saw an overall increase of 6% despite lagging sales in the iPhone. The biggest revenue is by far the iPhone right now with over $137B in revenue in the fiscal year ending in September. I expect to see the iPhone sales increasing in the next years, especially in 2021, with the new 5G iPhone creating a super-cycle for the company, as most iPhone users, including myself here, as I will upgrade from my iPhone X, will switch to this new product. The iPhone sales have decreased in the last couple of years by 14% and 3% as a result of the product not having big improvements, as well as iPhone usually starting to last longer than previous models, so I expect to see a 12% increase in sales next year and a gradual decrease in the growth of sales as more people upgrade, ending with just a 5% growth in iPhone sales in 2025.
The next revenues stream is from the Mac, which has seen an increase in the past 2years, with revenues topping $28B this year after the huge demand from the work from home consumers. I expect this trend to continue as they plan to continue to launch better products and I can see the company having a similar growth next year before starting to decline slightly until 2025, also ending with a 5% growth.
The iPad is currently the smallest revenue stream for Apple but has also seen an increase in demand in the past 2 years with a 13% average increase in revenues. I also expect the iPad to continue to grow in the next couple of years, especially with the learn-from-home environment for kids, and even after this period ends, the transformation for learning will implicate more digital usage. I expect the iPad to see some similar growth to the Macs, especially with the latest generation also bringing a new iPad air to the market.
The 4th revenue stream and the fastest growing in the past 2 years, with an average growth of 33% are the wearables, home & accessories revenues. This have topped $30B this year, as Apple has also just launched the Apple Watch series 6 and also feature other great products like Apple TV, the Air Pods the Home Pod and the Home Pod mini alongside other third-party accessories.
I gave this revenue stream a growth of 20% starting next year with a gradual decrease to around 8% by 2025, as I believe this will become more & more popular as they start to offer more vertical integration.
And last, but by no means least, the revenue stream that I expect to grow the most and the fastest is the revenue from the services that Apple offers. This includes revenues from Apple Care, Advertising, Cloud Services, Payment Services like Apple Card & Apple Pay and of course the digital content which includes fees from the App Store alongside subscription-based income including the new Apple One Bundle and Apple Fitness+ alongside the already know Apple Arcade, Apple Music, Apple News+, Apple TV+ and hopefully I don’t forget any others.
So, I expect this to become the clear 2nd biggest revenue stream for Apple by 2025, as I expect this to grow more than 20% next year, mainly due to the Apple One Bundle and Apple Fitness+ followed up by a slightly decreasing growth, ending with a 10% increase in revenues in 2025.
I think this are fairly conservative base case scenarios for the revenues, as I expect them to continue to increase the other revenue streams and not have such a large percentage of the revenues coming from the iPhone sales as you can see in this chart.
In terms of expenses, I pretty much kept the same margins as in previous years, with a 68% expense ratio on product sales [ iPhone / iPad / Mac / WHA ] and 35% expense ratio on SERVICES, as this are way more lucrative.
In the past 3 years, the products gross margin was 32.7%, so I actually imply bigger expenses for the manufacturing and sales of products, as this is mostly impacted by the company’s supplier’s ability to make up for and demand, while for the services revenue, the gross margins for the last 3 years has been 63.5% on average, but I expect this to be more in-line with the 66% margin in this past year. So, if services manage to grow to about half the revenues from the iPhone, this will effectively double the gross revenues, as every buck gained in the service revenues account for 2$ in the product sales.
So, I expect the total revenues for Apple to increase from $274B in 2020 to over $440B by 2025, increasing by approximately 10%/year, while I will keep the expense ratio pretty much in-line and have them increasing by 11%/year, this would bring the total gross income for Apple to $177B, increasing mainly due to the services revenues as I said earlier. This growth is just above the 4year average, and below the 2018 levels, which we might see again with this 5G super-cycle and explosive growth in the services revenue.
I also think the company will continue to invest in both Capital Expenditure and Operating expenses.
I think the operating expenses will remain pretty much in line with the previous years, as this number has increased by 1% annually both in R&D and SG&A. So, I will keep the exact percentages from previous years, as I expect the revenue to increase, thus I don’t see a big increase percentage wise. This would account for over $60B in operating expenses by 2025 and over $11B in Capital Expenditures by 2025, as I expect this to increase, mainly due to the possible EV developments or investments in self-driving capabilities alongside other manufacturing capabilities. You can see that the Capex spending has been decreasing in the past years with just over $8.8B in payments for business acquisitions and the other traditional Capex spending. Some people may use the cash generated by investing activities as Capex, but that is more unreliable. I also can see the Capex going back up, so I wanted to be safe and implied a 10% growth.
This money would account for over $73B in expenses and would bring the profit for the company to almost $104B before interest and taxes.
Moving on, let’s see what interest income and expenses the company has had in the past few years. We can see a decrease in interest expense in the past few years as the company has been paying off debt, but they have also been generating less money in this department, with an overall decrease in this department of more than 50% in the past year, way less than the amount from 2018. So, for safety reasons, I used a 10% decline in both income and expenses related to interest, while increasing the other losses by 10%/year.
This would bring the company pre-tax income to just over $104B in 2025.
Let’s move on to taxes. I know the Federal income tax rate is 21% for the company, but the actual effective tax rate for the company was lower than 15% in the past year, mainly due to lower tax-rates on foreign earnings alongside tax-benefits and tax-settlements. The average effective tax rate has been just over 16% in the past 3 years, but with more and more of the revenues coming from outside the US, I think it’s safe to say that the company will have around a 15% effective tax rate by 2025, this obviously if nothing major changes in tax policy around the world.
So, Apple would have $88.6B in income after tax by 2025 and with the current outstanding shares standing at just under 17B, so I don’t even account for the company probably continuing to do share buybacks, this would mean a $5.22 future earnings/share. And with today’s price for Apple just around 136$, that would mean to company is trading at just over 26 times forward price to earnings.
I don’t think Apple will ever trade at a discount again, with the current PE standing at over 40, I believe this will eventually go down, probably to around 35, despite the increase in services revenue, which is highly valued by investors. I think we can see Apple trade somewhere near 35 times P/E in 2025, especially if something big happens with the EV project, this could be even higher, just look at Tesla which trades at insane P/E. Of course, we also have to take into consideration the dividends that will be received from owning the stock, as Apple has started to pay dividends almost a decade ago and has 9 years of dividend growth, with a 10% annual rate of growth in the past 5 years. Here is the dividend growth history for the company, as I also went conservative on this estimate and implied a 7% growth for the next 2 years, 6% for 2023 and 2024 and just 5% in 2025.
So here are my 3 price targets for the company, including dividends but not reinvested. My bear case scenario is that Apple will trade at almost 165$ which implies a return of over 21% by 2025, while my base case scenario would see Apple trading at 195$ with a return of capital of 43%. I will also make the bull case for Apple trading at 225$ by 2025 with dividends included, which would imply just over 65% in gains by then.
I think this is possible as Apple has also continued to buy back shares of the company on a constant basis, as they continue to an impressive campaign with over $72B worth of common stock repurchased in 2020. They continue to buy back shares at a very fast pace, having repurchased over 1.3B shares in 2019 and 2018, while also issuing less stock every year.
So here is the full spreadsheet that I have projected for Apple by 2025 and the breakdown of everything i estimated [ 1 / 2 ] , if you do have another opinion or a suggestion please leave a comment down below, I think I have been conservative in most of my projections, but feel free to give your opinion.
Keep in mind, these targets might sound ridiculous, but just look at the growth Apple has had in the last 5years. The company has increased in value by more 400% in just the past 5years and is over 100.000% up since it started trading. So yes, the valuation is mad right now for the company. So, are you willing to bet against Apple?
The company also has pristine financials, with more than $65B in total assets compared to total liabilities, and more than $38B in cash and cash equivalents.
So, what do I expect in the next couple of days, weeks and months for Apple?
Let’s look at this CHART, so starting with the stock split, Apple saw a correction within the September stock market pullback, in a buy the news & sell the event, after a huge runup post-announcement of the stock split. The stock entered a consolidation period, and didn’t have any big catalysts, especially with new iPhone lineup not being included in the Q4 results due to the late launch. The stock found some levels of resistance near the $120 levels that it struggled to get past but acted also as support after breaking them just before the recent news of the possible EV developments or self-driving-features to be licensed to other car manufacturers. After that news the stock spiked and has now reached the previous highs made before the stock split and is facing some resistance, if the stock pushes over $140 I think we can officially say that it broke the resistance at those levels and is not just a fake-out. But I think it’s likely that the stock will consolidate between 122 and 135$ in the next weeks until the next iPhone sales and quarterly results are released, as the stock has entered overbought territory again with an RSI over 70, the first time since the stock split.
So, what would I do? Well, I own Apple stock, and I really believe this company will remain the biggest or one of the biggest in the future, so I would really add on any weakness that the stock shows before the next quarter earnings are released, as typically Q1 earnings are the best for the company due to increased holiday sales combined with the launch of new products. I think any entry below 130$ would be really nice to start and build a position or increase it if you already own the stock. As I believe Apple is one of the most stable stocks out there with large institutional holders like Vanguard, BlackRock and Berkshire owning over 900M shares each.
Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion on the stock market!
Have a great day and see you next time!

Should you buy Apple stock or has the company run out of growth opportunities? What is my price prediction for Apple in the next years? Read until the end as I reveal my price target for Apple and also what I think will happen in the next couple of days, weeks & months!
~ Warning! Very Very Long Post~
Hello everyone! So, let’s go over some of the latest news on Apple before moving on to some fundamental and technical analysis, predictions and my price target for the stock in the next years.
[Disclosure: I made this DD last month, but I wasn't part of this Subreddit until the last few days]
So, let’s start with the news that Apple will cut the App Store commission in half for small app developers starting in the next days, this will affect developers who earn less than $1M annually from the App Store Sales. This is likely to lead to a small decline in commission revenues for Apple as around 98% of the app developers will qualify for this tax reduction from 30% to 15%, but all these small developers only contribute to about 5% of the estimated $50B in annual revenues from the App Store, so that would be only a $1.25B loss for the company, that is less than half a % of the company’s total net sales in the last fiscal year.
Also, these changes may lead to a potential long-term revenue boost, as it is likely this will lead to an increasing creation of apps which will generate more commissions in return.
Alongside this we also saw the company releasing the new MacBook’s with their first in-house chip, which promises faster video and imaging processing times, with both CPU and GPU performance up to 2 times faster than the latest PC laptop chip using just a fraction of the power consumption, with both of the macbooks promising big improvements in battery life. Apple is also expected to roll out even more in-house chips in future products, as they have started the 2-year breakup with Intel chips.
We also saw Morgan Stanley upgrading their base case to $191 at the end of November, as they have cited record lead times, supply chain forecasts and carriers demand as they expect that the company will sell around 270M iPhone in fiscal year 2021, that’s 50M more than the consensus and almost 30M more than the previous estimate of Morgan Stanley, with an average selling price of 842$, 9% more than the base case, as people tend to chose the more expensive and high tech versions of the lineup in this new 5G cycle.
The 5G super-cycle, which I believe is on the way, and will continue in the next years, as 5G become more available worldwide, could still be the biggest thing coming right away for the company with 5G smartphones expected to surpass 4G sales by 2024, with the average sale price of the 5G phones also coming down, helping them become more popular. This will also be helped by the recent entry to the Indian market, as India will probably become the world biggest country in the next decade, this could be a huge opportunity for Apple to start and take away market-share from their competitors like Samsung and Xiaomi which have the biggest market shares right now.
They also released an update iPad Pro and an all-new iPad Air in September which will also boost sales in this work-from-home environment that will keep the demand very high for this kind of products, just like the Macs. Alongside the increasing demand from the Wearables, Home & Accessories that include Air Pods, Apple TV, Apple Watch, and many more products.
But the biggest reasons I believe Apple is poised for continued growth, is primarily due to its services business, as they start to offer more and more services like the Apple ONE BUNDLE, which include up to 6 services from (Apple Music, Apple TV+, Apple Arcade, Apple News+, the new Apple Fitness+ and the iCloud service) for a pretty reasonable price in my opinion starting from 15$ up to 30$/month, this could be a great option for families and even individuals who use their services a lot.
The latest services, Fitness+ just launched in the past days, and is a direct competitor to the likes of Peloton, as the service is available on the iPhone, iPad or even Apple TV. This also makes consumers buy the Apple Watch which syncs to the other devices to show you different information. The Fitness+ app just on its own is 8$/month or 80$/year which is less expensive than Peloton subscription which charges 13$ or even traditional gyms like Planet Fitness at 10$/month.
I think this will be the fastest growing sector for the company, as this aligns with the new macro trends, as the world is moving more and more to a digital approach to almost everything as consumer preferences, with more & more younger people reaching the point in life when they use these services start to align to this increasing digital approach.
We also shouldn’t forget the Apple Card & Apple Pay service among many others which also seem to gain from the move to digital & contactless payments, as this has been accelerated due to the current situation in the past year.
And one last piece of news, and the most recent one, is that Apple may have fast-tracked the Titan project. The Titan project is targeting a 2024 or 2025 push to develop an electric vehicle with advanced battery technologies, that will deliver significant increases in range at much lower costs than the current technologies while also offering self-driving capabilities.
It’s reported they will not use the same technology as Tesla Full-Self-Driving feature, but will use LIDAR sensors, similar to those that we can find in the latest iPhone 12 PRO.
I think Apple can go 2 ways with this project, they can either use the huge amount of cash the company has to buy another car-maker like Ford, GM or any other car manufacturer expect Tesla and Toyota which do have a big market cap, so that they can fast-track the potential manufacturing of cars, or they can enter into a partnership with big companies like Tesla, Volkswagen or any other car marker to either produce cars or license their technology to this other car-makers which would ultimately and probably have higher margin-returns than the effective manufacturing of cars. Apple’s current overall gross margins stand at 38% vs the 15% average of the world top 10 automakers by market cap, which is significantly lower.
But this Apple Car thing is so far out, and there are so many unknowns, I will not try to predict anything related to this until there is more clarity on the subject.
And last, before moving on to some predictions, here are some of the highlights that we heard from the latest investors conference meeting, as the CEO, Tim Cook expressed optimism ahead with the launch of many new products and services, especially the Home Pod Mini and the new 5G iPhones, as these new iPhones include new LIDAR scanners that greatly improve the camera capabilities, as the iPhone as seen very positive reviews. We also saw the Senior VP and CFO, Luca Maestri give us great outlook for the company as they expect the installed devices base to continue to growth despite already being at an all-time high as they have over 585M paid subscriptions on their platforms and expect this to surpass 600M by the end of 2020.
I also researched and found what products we can see in the near future, with the first half of 2021 bringing new iMacs, the AirPods3 and the iPad Pro, while in the FALL event we will probably get the new iPhone 13 alongside the iPhone SE PLUS and the Watch Series 7 with more products coming later in 2021 or that don’t have an estimated release date like the Air Pods Pro, the Air Tags and the iPad Mini 6.
So, before even starting, you should know that I am bull on Apple but I am willing to hear other opinions so don’t be afraid to leave a comment down below.
I have made some predictions based on the growth rate of the company, the latest plans announced by them and used some estimates. So, keep in mind this are only projections and are calculated by myself, this is not an investment advice and you should do your own research.
This are my 2025 projections for Apple, let’s take a closer look at them, each on their own.
So, in term of revenues, Apple has 5 big sources of income, which saw an overall increase of 6% despite lagging sales in the iPhone. The biggest revenue is by far the iPhone right now with over $137B in revenue in the fiscal year ending in September. I expect to see the iPhone sales increasing in the next years, especially in 2021, with the new 5G iPhone creating a super-cycle for the company, as most iPhone users, including myself here, as I will upgrade from my iPhone X, will switch to this new product. The iPhone sales have decreased in the last couple of years by 14% and 3% as a result of the product not having big improvements, as well as iPhone usually starting to last longer than previous models, so I expect to see a 12% increase in sales next year and a gradual decrease in the growth of sales as more people upgrade, ending with just a 5% growth in iPhone sales in 2025.
The next revenues stream is from the Mac, which has seen an increase in the past 2years, with revenues topping $28B this year after the huge demand from the work from home consumers. I expect this trend to continue as they plan to continue to launch better products and I can see the company having a similar growth next year before starting to decline slightly until 2025, also ending with a 5% growth.
The iPad is currently the smallest revenue stream for Apple but has also seen an increase in demand in the past 2 years with a 13% average increase in revenues. I also expect the iPad to continue to grow in the next couple of years, especially with the learn-from-home environment for kids, and even after this period ends, the transformation for learning will implicate more digital usage. I expect the iPad to see some similar growth to the Macs, especially with the latest generation also bringing a new iPad air to the market.
The 4th revenue stream and the fastest growing in the past 2 years, with an average growth of 33% are the wearables, home & accessories revenues. This have topped $30B this year, as Apple has also just launched the Apple Watch series 6 and also feature other great products like Apple TV, the Air Pods the Home Pod and the Home Pod mini alongside other third-party accessories.
I gave this revenue stream a growth of 20% starting next year with a gradual decrease to around 8% by 2025, as I believe this will become more & more popular as they start to offer more vertical integration.
And last, but by no means least, the revenue stream that I expect to grow the most and the fastest is the revenue from the services that Apple offers. This includes revenues from Apple Care, Advertising, Cloud Services, Payment Services like Apple Card & Apple Pay and of course the digital content which includes fees from the App Store alongside subscription-based income including the new Apple One Bundle and Apple Fitness+ alongside the already know Apple Arcade, Apple Music, Apple News+, Apple TV+ and hopefully I don’t forget any others.
So, I expect this to become the clear 2nd biggest revenue stream for Apple by 2025, as I expect this to grow more than 20% next year, mainly due to the Apple One Bundle and Apple Fitness+ followed up by a slightly decreasing growth, ending with a 10% increase in revenues in 2025.
I think this are fairly conservative base case scenarios for the revenues, as I expect them to continue to increase the other revenue streams and not have such a large percentage of the revenues coming from the iPhone sales as you can see in this chart.
In terms of expenses, I pretty much kept the same margins as in previous years, with a 68% expense ratio on product sales [ iPhone / iPad / Mac / WHA ] and 35% expense ratio on SERVICES, as this are way more lucrative.
In the past 3 years, the products gross margin was 32.7%, so I actually imply bigger expenses for the manufacturing and sales of products, as this is mostly impacted by the company’s supplier’s ability to make up for and demand, while for the services revenue, the gross margins for the last 3 years has been 63.5% on average, but I expect this to be more in-line with the 66% margin in this past year. So, if services manage to grow to about half the revenues from the iPhone, this will effectively double the gross revenues, as every buck gained in the service revenues account for 2$ in the product sales.
So, I expect the total revenues for Apple to increase from $274B in 2020 to over $440B by 2025, increasing by approximately 10%/year, while I will keep the expense ratio pretty much in-line and have them increasing by 11%/year, this would bring the total gross income for Apple to $177B, increasing mainly due to the services revenues as I said earlier. This growth is just above the 4year average, and below the 2018 levels, which we might see again with this 5G super-cycle and explosive growth in the services revenue.
I also think the company will continue to invest in both Capital Expenditure and Operating expenses.
I think the operating expenses will remain pretty much in line with the previous years, as this number has increased by 1% annually both in R&D and SG&A. So, I will keep the exact percentages from previous years, as I expect the revenue to increase, thus I don’t see a big increase percentage wise. This would account for over $60B in operating expenses by 2025 and over $11B in Capital Expenditures by 2025, as I expect this to increase, mainly due to the possible EV developments or investments in self-driving capabilities alongside other manufacturing capabilities. You can see that the Capex spending has been decreasing in the past years with just over $8.8B in payments for business acquisitions and the other traditional Capex spending. Some people may use the cash generated by investing activities as Capex, but that is more unreliable. I also can see the Capex going back up, so I wanted to be safe and implied a 10% growth.
This money would account for over $73B in expenses and would bring the profit for the company to almost $104B before interest and taxes.
Moving on, let’s see what interest income and expenses the company has had in the past few years. We can see a decrease in interest expense in the past few years as the company has been paying off debt, but they have also been generating less money in this department, with an overall decrease in this department of more than 50% in the past year, way less than the amount from 2018. So, for safety reasons, I used a 10% decline in both income and expenses related to interest, while increasing the other losses by 10%/year.
This would bring the company pre-tax income to just over $104B in 2025.
Let’s move on to taxes. I know the Federal income tax rate is 21% for the company, but the actual effective tax rate for the company was lower than 15% in the past year, mainly due to lower tax-rates on foreign earnings alongside tax-benefits and tax-settlements. The average effective tax rate has been just over 16% in the past 3 years, but with more and more of the revenues coming from outside the US, I think it’s safe to say that the company will have around a 15% effective tax rate by 2025, this obviously if nothing major changes in tax policy around the world.
So, Apple would have $88.6B in income after tax by 2025 and with the current outstanding shares standing at just under 17B, so I don’t even account for the company probably continuing to do share buybacks, this would mean a $5.22 future earnings/share. And with today’s price for Apple just around 136$, that would mean to company is trading at just over 26 times forward price to earnings.
I don’t think Apple will ever trade at a discount again, with the current PE standing at over 40, I believe this will eventually go down, probably to around 35, despite the increase in services revenue, which is highly valued by investors. I think we can see Apple trade somewhere near 35 times P/E in 2025, especially if something big happens with the EV project, this could be even higher, just look at Tesla which trades at insane P/E. Of course, we also have to take into consideration the dividends that will be received from owning the stock, as Apple has started to pay dividends almost a decade ago and has 9 years of dividend growth, with a 10% annual rate of growth in the past 5 years. Here is the dividend growth history for the company, as I also went conservative on this estimate and implied a 7% growth for the next 2 years, 6% for 2023 and 2024 and just 5% in 2025.
So here are my 3 price targets for the company, including dividends but not reinvested. My bear case scenario is that Apple will trade at almost 165$ which implies a return of over 21% by 2025, while my base case scenario would see Apple trading at 195$ with a return of capital of 43%. I will also make the bull case for Apple trading at 225$ by 2025 with dividends included, which would imply just over 65% in gains by then.
I think this is possible as Apple has also continued to buy back shares of the company on a constant basis, as they continue to an impressive campaign with over $72B worth of common stock repurchased in 2020. They continue to buy back shares at a very fast pace, having repurchased over 1.3B shares in 2019 and 2018, while also issuing less stock every year.
So here is the full spreadsheet that I have projected for Apple by 2025 and the breakdown of everything i estimated [ 1 / 2 ] , if you do have another opinion or a suggestion please leave a comment down below, I think I have been conservative in most of my projections, but feel free to give your opinion.
Keep in mind, these targets might sound ridiculous, but just look at the growth Apple has had in the last 5years. The company has increased in value by more 400% in just the past 5years and is over 100.000% up since it started trading. So yes, the valuation is mad right now for the company. So, are you willing to bet against Apple?
The company also has pristine financials, with more than $65B in total assets compared to total liabilities, and more than $38B in cash and cash equivalents.
So, what do I expect in the next couple of days, weeks and months for Apple?
Let’s look at this CHART, so starting with the stock split, Apple saw a correction within the September stock market pullback, in a buy the news & sell the event, after a huge runup post-announcement of the stock split. The stock entered a consolidation period, and didn’t have any big catalysts, especially with new iPhone lineup not being included in the Q4 results due to the late launch. The stock found some levels of resistance near the $120 levels that it struggled to get past but acted also as support after breaking them just before the recent news of the possible EV developments or self-driving-features to be licensed to other car manufacturers. After that news the stock spiked and has now reached the previous highs made before the stock split and is facing some resistance, if the stock pushes over $140 I think we can officially say that it broke the resistance at those levels and is not just a fake-out. But I think it’s likely that the stock will consolidate between 122 and 135$ in the next weeks until the next iPhone sales and quarterly results are released, as the stock has entered overbought territory again with an RSI over 70, the first time since the stock split.
So, what would I do? Well, I own Apple stock, and I really believe this company will remain the biggest or one of the biggest in the future, so I would really add on any weakness that the stock shows before the next quarter earnings are released, as typically Q1 earnings are the best for the company due to increased holiday sales combined with the launch of new products. I think any entry below 130$ would be really nice to start and build a position or increase it if you already own the stock. As I believe Apple is one of the most stable stocks out there with large institutional holders like Vanguard, BlackRock and Berkshire owning over 900M shares each.
Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion on the stock market!
Have a great day and see you next time!

Should you buy Apple stock or has the company run out of growth opportunities? What is my price prediction for Apple in the next years? Read until the end as I reveal my price target for Apple and also what I think will happen in the next couple of days, weeks & months!
~ Warning! Very Very Long Post~
Hello everyone! So, let’s go over some of the latest news on Apple before moving on to some fundamental and technical analysis, predictions and my price target for the stock in the next years.
So, let’s start with the news that Apple will cut the App Store commission in half for small app developers starting in the next days, this will affect developers who earn less than $1M annually from the App Store Sales. This is likely to lead to a small decline in commission revenues for Apple as around 98% of the app developers will qualify for this tax reduction from 30% to 15%, but all these small developers only contribute to about 5% of the estimated $50B in annual revenues from the App Store, so that would be only a $1.25B loss for the company, that is less than half a % of the company’s total net sales in the last fiscal year.
Also, these changes may lead to a potential long-term revenue boost, as it is likely this will lead to an increasing creation of apps which will generate more commissions in return.
Alongside this we also saw the company releasing the new MacBook’s with their first in-house chip, which promises faster video and imaging processing times, with both CPU and GPU performance up to 2 times faster than the latest PC laptop chip using just a fraction of the power consumption, with both of the macbooks promising big improvements in battery life. Apple is also expected to roll out even more in-house chips in future products, as they have started the 2-year breakup with Intel chips.
We also saw Morgan Stanley upgrading their base case to $191 at the end of November, as they have cited record lead times, supply chain forecasts and carriers demand as they expect that the company will sell around 270M iPhone in fiscal year 2021, that’s 50M more than the consensus and almost 30M more than the previous estimate of Morgan Stanley, with an average selling price of 842$, 9% more than the base case, as people tend to chose the more expensive and high tech versions of the lineup in this new 5G cycle.
The 5G super-cycle, which I believe is on the way, and will continue in the next years, as 5G become more available worldwide, could still be the biggest thing coming right away for the company with 5G smartphones expected to surpass 4G sales by 2024, with the average sale price of the 5G phones also coming down, helping them become more popular. This will also be helped by the recent entry to the Indian market, as India will probably become the world biggest country in the next decade, this could be a huge opportunity for Apple to start and take away market-share from their competitors like Samsung and Xiaomi which have the biggest market shares right now.
They also released an update iPad Pro and an all-new iPad Air in September which will also boost sales in this work-from-home environment that will keep the demand very high for this kind of products, just like the Macs. Alongside the increasing demand from the Wearables, Home & Accessories that include Air Pods, Apple TV, Apple Watch, and many more products.
But the biggest reasons I believe Apple is poised for continued growth, is primarily due to its services business, as they start to offer more and more services like the Apple ONE BUNDLE, which include up to 6 services from (Apple Music, Apple TV+, Apple Arcade, Apple News+, the new Apple Fitness+ and the iCloud service) for a pretty reasonable price in my opinion starting from 15$ up to 30$/month, this could be a great option for families and even individuals who use their services a lot.
The latest services, Fitness+ just launched in the past days, and is a direct competitor to the likes of Peloton, as the service is available on the iPhone, iPad or even Apple TV. This also makes consumers buy the Apple Watch which syncs to the other devices to show you different information. The Fitness+ app just on its own is 8$/month or 80$/year which is less expensive than Peloton subscription which charges 13$ or even traditional gyms like Planet Fitness at 10$/month.
I think this will be the fastest growing sector for the company, as this aligns with the new macro trends, as the world is moving more and more to a digital approach to almost everything as consumer preferences, with more & more younger people reaching the point in life when they use these services start to align to this increasing digital approach.
We also shouldn’t forget the Apple Card & Apple Pay service among many others which also seem to gain from the move to digital & contactless payments, as this has been accelerated due to the current situation in the past year.
And one last piece of news, and the most recent one, is that Apple may have fast-tracked the Titan project. The Titan project is targeting a 2024 or 2025 push to develop an electric vehicle with advanced battery technologies, that will deliver significant increases in range at much lower costs than the current technologies while also offering self-driving capabilities.
It’s reported they will not use the same technology as Tesla Full-Self-Driving feature, but will use LIDAR sensors, similar to those that we can find in the latest iPhone 12 PRO.
I think Apple can go 2 ways with this project, they can either use the huge amount of cash the company has to buy another car-maker like Ford, GM or any other car manufacturer expect Tesla and Toyota which do have a big market cap, so that they can fast-track the potential manufacturing of cars, or they can enter into a partnership with big companies like Tesla, Volkswagen or any other car marker to either produce cars or license their technology to this other car-makers which would ultimately and probably have higher margin-returns than the effective manufacturing of cars. Apple’s current overall gross margins stand at 38% vs the 15% average of the world top 10 automakers by market cap, which is significantly lower.
But this Apple Car thing is so far out, and there are so many unknowns, I will not try to predict anything related to this until there is more clarity on the subject.
And last, before moving on to some predictions, here are some of the highlights that we heard from the latest investors conference meeting, as the CEO, Tim Cook expressed optimism ahead with the launch of many new products and services, especially the Home Pod Mini and the new 5G iPhones, as these new iPhones include new LIDAR scanners that greatly improve the camera capabilities, as the iPhone as seen very positive reviews. We also saw the Senior VP and CFO, Luca Maestri give us great outlook for the company as they expect the installed devices base to continue to growth despite already being at an all-time high as they have over 585M paid subscriptions on their platforms and expect this to surpass 600M by the end of 2020.
I also researched and found what products we can see in the near future, with the first half of 2021 bringing new iMacs, the AirPods3 and the iPad Pro, while in the FALL event we will probably get the new iPhone 13 alongside the iPhone SE PLUS and the Watch Series 7 with more products coming later in 2021 or that don’t have an estimated release date like the Air Pods Pro, the Air Tags and the iPad Mini 6.
So, before even starting, you should know that I am bull on Apple but I am willing to hear other opinions so don’t be afraid to leave a comment down below.
I have made some predictions based on the growth rate of the company, the latest plans announced by them and used some estimates. So, keep in mind this are only projections and are calculated by myself, this is not an investment advice and you should do your own research.
This are my 2025 projections for Apple, let’s take a closer look at them, each on their own.
So, in term of revenues, Apple has 5 big sources of income, which saw an overall increase of 6% despite lagging sales in the iPhone. The biggest revenue is by far the iPhone right now with over $137B in revenue in the fiscal year ending in September. I expect to see the iPhone sales increasing in the next years, especially in 2021, with the new 5G iPhone creating a super-cycle for the company, as most iPhone users, including myself here, as I will upgrade from my iPhone X, will switch to this new product. The iPhone sales have decreased in the last couple of years by 14% and 3% as a result of the product not having big improvements, as well as iPhone usually starting to last longer than previous models, so I expect to see a 12% increase in sales next year and a gradual decrease in the growth of sales as more people upgrade, ending with just a 5% growth in iPhone sales in 2025.
The next revenues stream is from the Mac, which has seen an increase in the past 2years, with revenues topping $28B this year after the huge demand from the work from home consumers. I expect this trend to continue as they plan to continue to launch better products and I can see the company having a similar growth next year before starting to decline slightly until 2025, also ending with a 5% growth.
The iPad is currently the smallest revenue stream for Apple but has also seen an increase in demand in the past 2 years with a 13% average increase in revenues. I also expect the iPad to continue to grow in the next couple of years, especially with the learn-from-home environment for kids, and even after this period ends, the transformation for learning will implicate more digital usage. I expect the iPad to see some similar growth to the Macs, especially with the latest generation also bringing a new iPad air to the market.
The 4th revenue stream and the fastest growing in the past 2 years, with an average growth of 33% are the wearables, home & accessories revenues. This have topped $30B this year, as Apple has also just launched the Apple Watch series 6 and also feature other great products like Apple TV, the Air Pods the Home Pod and the Home Pod mini alongside other third-party accessories.
I gave this revenue stream a growth of 20% starting next year with a gradual decrease to around 8% by 2025, as I believe this will become more & more popular as they start to offer more vertical integration.
And last, but by no means least, the revenue stream that I expect to grow the most and the fastest is the revenue from the services that Apple offers. This includes revenues from Apple Care, Advertising, Cloud Services, Payment Services like Apple Card & Apple Pay and of course the digital content which includes fees from the App Store alongside subscription-based income including the new Apple One Bundle and Apple Fitness+ alongside the already know Apple Arcade, Apple Music, Apple News+, Apple TV+ and hopefully I don’t forget any others.
So, I expect this to become the clear 2nd biggest revenue stream for Apple by 2025, as I expect this to grow more than 20% next year, mainly due to the Apple One Bundle and Apple Fitness+ followed up by a slightly decreasing growth, ending with a 10% increase in revenues in 2025.
I think this are fairly conservative base case scenarios for the revenues, as I expect them to continue to increase the other revenue streams and not have such a large percentage of the revenues coming from the iPhone sales as you can see in this chart.
In terms of expenses, I pretty much kept the same margins as in previous years, with a 68% expense ratio on product sales [ iPhone / iPad / Mac / WHA ] and 35% expense ratio on SERVICES, as this are way more lucrative.
In the past 3 years, the products gross margin was 32.7%, so I actually imply bigger expenses for the manufacturing and sales of products, as this is mostly impacted by the company’s supplier’s ability to make up for and demand, while for the services revenue, the gross margins for the last 3 years has been 63.5% on average, but I expect this to be more in-line with the 66% margin in this past year. So, if services manage to grow to about half the revenues from the iPhone, this will effectively double the gross revenues, as every buck gained in the service revenues account for 2$ in the product sales.
So, I expect the total revenues for Apple to increase from $274B in 2020 to over $440B by 2025, increasing by approximately 10%/year, while I will keep the expense ratio pretty much in-line and have them increasing by 11%/year, this would bring the total gross income for Apple to $177B, increasing mainly due to the services revenues as I said earlier. This growth is just above the 4year average, and below the 2018 levels, which we might see again with this 5G super-cycle and explosive growth in the services revenue.
I also think the company will continue to invest in both Capital Expenditure and Operating expenses.
I think the operating expenses will remain pretty much in line with the previous years, as this number has increased by 1% annually both in R&D and SG&A. So, I will keep the exact percentages from previous years, as I expect the revenue to increase, thus I don’t see a big increase percentage wise. This would account for over $60B in operating expenses by 2025 and over $11B in Capital Expenditures by 2025, as I expect this to increase, mainly due to the possible EV developments or investments in self-driving capabilities alongside other manufacturing capabilities. You can see that the Capex spending has been decreasing in the past years with just over $8.8B in payments for business acquisitions and the other traditional Capex spending. Some people may use the cash generated by investing activities as Capex, but that is more unreliable. I also can see the Capex going back up, so I wanted to be safe and implied a 10% growth.
This money would account for over $73B in expenses and would bring the profit for the company to almost $104B before interest and taxes.
Moving on, let’s see what interest income and expenses the company has had in the past few years. We can see a decrease in interest expense in the past few years as the company has been paying off debt, but they have also been generating less money in this department, with an overall decrease in this department of more than 50% in the past year, way less than the amount from 2018. So, for safety reasons, I used a 10% decline in both income and expenses related to interest, while increasing the other losses by 10%/year.
This would bring the company pre-tax income to just over $104B in 2025.
Let’s move on to taxes. I know the Federal income tax rate is 21% for the company, but the actual effective tax rate for the company was lower than 15% in the past year, mainly due to lower tax-rates on foreign earnings alongside tax-benefits and tax-settlements. The average effective tax rate has been just over 16% in the past 3 years, but with more and more of the revenues coming from outside the US, I think it’s safe to say that the company will have around a 15% effective tax rate by 2025, this obviously if nothing major changes in tax policy around the world.
So, Apple would have $88.6B in income after tax by 2025 and with the current outstanding shares standing at just under 17B, so I don’t even account for the company probably continuing to do share buybacks, this would mean a $5.22 future earnings/share. And with today’s price for Apple just around 136$, that would mean to company is trading at just over 26 times forward price to earnings.
I don’t think Apple will ever trade at a discount again, with the current PE standing at over 40, I believe this will eventually go down, probably to around 35, despite the increase in services revenue, which is highly valued by investors. I think we can see Apple trade somewhere near 35 times P/E in 2025, especially if something big happens with the EV project, this could be even higher, just look at Tesla which trades at insane P/E. Of course, we also have to take into consideration the dividends that will be received from owning the stock, as Apple has started to pay dividends almost a decade ago and has 9 years of dividend growth, with a 10% annual rate of growth in the past 5 years. Here is the dividend growth history for the company, as I also went conservative on this estimate and implied a 7% growth for the next 2 years, 6% for 2023 and 2024 and just 5% in 2025.
So here are my 3 price targets for the company, including dividends but not reinvested. My bear case scenario is that Apple will trade at almost 165$ which implies a return of over 21% by 2025, while my base case scenario would see Apple trading at 195$ with a return of capital of 43%. I will also make the bull case for Apple trading at 225$ by 2025 with dividends included, which would imply just over 65% in gains by then.
I think this is possible as Apple has also continued to buy back shares of the company on a constant basis, as they continue to an impressive campaign with over $72B worth of common stock repurchased in 2020. They continue to buy back shares at a very fast pace, having repurchased over 1.3B shares in 2019 and 2018, while also issuing less stock every year.
So here is the full spreadsheet that I have projected for Apple by 2025 and the breakdown of everything i estimated [ 1 / 2 ] , if you do have another opinion or a suggestion please leave a comment down below, I think I have been conservative in most of my projections, but feel free to give your opinion.
Keep in mind, these targets might sound ridiculous, but just look at the growth Apple has had in the last 5years. The company has increased in value by more 400% in just the past 5years and is over 100.000% up since it started trading. So yes, the valuation is mad right now for the company. So, are you willing to bet against Apple?
The company also has pristine financials, with more than $65B in total assets compared to total liabilities, and more than $38B in cash and cash equivalents.
So, what do I expect in the next couple of days, weeks and months for Apple?
Let’s look at this CHART, so starting with the stock split, Apple saw a correction within the September stock market pullback, in a buy the news & sell the event, after a huge runup post-announcement of the stock split. The stock entered a consolidation period, and didn’t have any big catalysts, especially with new iPhone lineup not being included in the Q4 results due to the late launch. The stock found some levels of resistance near the $120 levels that it struggled to get past but acted also as support after breaking them just before the recent news of the possible EV developments or self-driving-features to be licensed to other car manufacturers. After that news the stock spiked and has now reached the previous highs made before the stock split and is facing some resistance, if the stock pushes over $140 I think we can officially say that it broke the resistance at those levels and is not just a fake-out. But I think it’s likely that the stock will consolidate between 122 and 135$ in the next weeks until the next iPhone sales and quarterly results are released, as the stock has entered overbought territory again with an RSI over 70, the first time since the stock split.
So, what would I do? Well, I own Apple stock, and I really believe this company will remain the biggest or one of the biggest in the future, so I would really add on any weakness that the stock shows before the next quarter earnings are released, as typically Q1 earnings are the best for the company due to increased holiday sales combined with the launch of new products. I think any entry below 130$ would be really nice to start and build a position or increase it if you already own the stock. As I believe Apple is one of the most stable stocks out there with large institutional holders like Vanguard, BlackRock and Berkshire owning over 900M shares each.
Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion on the stock market!
Have a great day and see you next time!

Hey! All of the prices are OBO, so feel free to make an offer, especially if you're interested in multiple games! Shipping'll depend on the weight of everything you're interested in, but on average it'll be between $3 and $5. I’ll take photos for you upon interest of games.
I ship ASAP!
I may have accidentally forgotten to denote some CIB games missing manuals, but if you express interest I’ll check and take pictures and let you know.
Xbox:

• Shrek 2: $5
• 2x X-Men Legends: $5 each
• Chronicles of Riddick: Escape From Butcher Bay: $12
• 2x Pirates of the Caribbean: $9 each
• Fable: The Lost Chapters: $12 shipped
• LA Rush: $4
• Midnight Club II: $4
• Monster Garage: $3
• The Incredibles: $10 shipped
• Syberia: $6
• Deus Ex: Invisible War: $3
• Hulk: $10 shipped
• Superman Returns: $10 shipped
• Disney's The Haunted Mansion: $10 shipped
• Big Mutha Truckers: $5
• Dance Dance Revolution II: $3
• Lara Croft Tomb Raider: Legend: $12 shipped
• Enclave: $4
• Top Spin: $3
• Tiger Woods PGA Tour 2003: $3
• Madden 07: $4
• Call of Duty 3: $4
• Doom 3 Limited Collectors Edition Steelbook (Steelbook is rusty): $9

Xbox 360 Games/Items:

• Authentic Black Wireless Controller: $13
• Kinect: $13
• Kinect Adventures: $2
• Kinectimals (Black Case): $8
• Kinectimals (Purple Case): $9
• Tropico 3 Demo Disk 107 (Official Xbox Magazine Edition): $10 shipped
• Splinter Cell Conviction Demo Disk 111 (Official Xbox Magazine Edition): $10 shipped
• The Bourne Conspiracy Demo Disk 85 (Official Xbox Magazine Edition): $11 shipped
• IL 2 Sturmovik: Birds of Prey Demo Disk 102 (Official Xbox Magazine Edition): $12 shipped
• Borderlands Demo Disk 103 (Official Xbox Magazine Edition): $12 shipped
• Grand Theft Auto IV: $5
• Batman: Arkham City (Disk only, in GameStop Case): $4
• Race Pro (Disk only, in GameStop Case): $4
• Mafia II (Disk Only): $7
• Borderlands Game of the Year Edition: $10
• Call of Duty: Black Ops (No Manual): $9
• Call of Duty: World At War: $5
• Call of Duty: Modern Warefare 2 (Disk Only): $3
• 2x Call of Duty: Modern Warefare 2: $5 each
• 4x Call of Duty Modern Warefare 3: $6 each
• Call of Duty: Ghosts: $5
• Tom Clancy's Ghost Recon: Advanced Warfighter: $4
• Gears of War (Disc only, in GameStop Case): $3
• Gears of War 3 (Disk only, in GameStop case): $3
• Madden NFL 08: $4
• Madden NFL 09: $3
• Madden NFL 10: $3
• Madden NFL 11 (Disk Only): $1
• Madden NFL 12: $3
• Madden NFL 25: $5
• NHL 08: $4
• NHL 11: $3
• NHL 13: $3
• NBA 2K9: $3
• NBA 2K13: $4
• NBA 2K14: $4
• NBA 2K15: $5
• 2x FIFA Soccer 11: $4 each
• FIFA Soccer 12: $3
• FIFA Soccer 15: $4
• Gears of War (Platinum): $9 shipped
• The Elder Scrolls V: Skyrim: $9 shipped
• The Elder Scrolls V: Skyrim (basic case): $8 shipped
• Tiger Woods PGA Tour 08: $4
• Xbox Live Arcade Compilation Disc: $4
• 2x Sega Superstars Tennis: $4 each
• 3x Sega Superstars Tennis and Xbox Live Arcade: $6 each
• 2x Madden 09: $3 each
• Dead Island (Disc only in GameStop case): $3
• Tom Clancy's Rainbow Six Vegas 2: $3
• Dead Rising 2: $6
• Skylanders Swap Force (Not For Sale Version): $4
• Skylanders Giants (Not For Sale Version): $4
• Call of Duty 4 Modern Warefare: $3
• Battlefield 3: $3
• Assassin's Creed Platinum Hits: $7
• Assassin's Creed III: $4
• Assassin's Creed Revelations: $3
• Power Gig: Rise of the SixString: $2
• Tron: Evolution: $4
• Halo Reach: $12
• 2x Halo 3: $9 each
• Halo 4: $3
• Brink: $3
• Bioshock: $7
• Wolfenstein: $12
• Banjo-Kazooie Nuts & Bolts: $10
• Dark Souls II (No Manual): $7
• Skate 3 (Disc Only): $4
• Rockband 2: $9
• The Beatles Rockband: $9
• Red Dead Redemption: $9
• NBA 2k10 (Disc only, in GameStop case): $5
• Dirt 2: $10
• MLB 2K11 (No Manual): $4
• NBA 2K8 (No Manual): $3
• Tiger Woods PGA Tour 09: $5
• MUD (No Manual): $7
• NHL 12: $3
• Madden 10: $3
• Hot Wheels World’s Best Driver: $8

PS1:

• Jeopardy!: $3

PS2 Games (not loose) and Items:

• Soul Calibur II: $8
• Sonic Unleashed: $10
• 2x Tony Hawk's Pro Skater 3: $9 each
• Tony Hawk's Pro Skater 4: $6
• Kingdom Hearts: $6
• Medal of Honor Rising Sun and Medal of Honor Frontline: $10 shipped for both
• Greg Hastings Paintball Tournament (Case and Game, no Manual): $3
• Silent Scope 2: Dark Silhouette (Disc and Manual only): $3
• Backyard Baseball (Alex Rodriguez): $8
• NHL 07: $4
• Thrillville Off The Rails: $6
• Shaun White Snowboarding: $6
• MLB 2006: $3
• Madden 07: $3
• Splashdown: $5
• Marvel Ultimate Alliance: $6
• Spiderman: $8
• Star Wars III Revenge of the Sith: $5
• Tekken 5: $18
• MLB 2K5: $3
• 2x World Championship Cards: $3 each
• Wheel of Fortune: $3
• Shrek Super Slam: $5
• 3x GTA III: $4 each
• Final Fantasy X-2: $5
• SnoCross 2: $3
• 4x4 Evolution: $5
• Ferrari F355 Challenge: $9 plus shipping (or $12 shipped)
• Cocoto Fishing Master: $3
• Adventures of Jimmy Neutron Boy Genius: Jet Fusion: $8
• 2x GTA Vice City: $9 each
• Shrek The Third: $5
• Madden 2005 Collector's Edition: $8
• Gran Turismo 4 PS2: $8
• Max Payne: $7
• Syphonfilter: The Omega Strain: $5
• Are You Smarter Than a Fifth Grader (Sealed): $15 shipped
• Ferrari Challenge: $12 shipped
• Metal Gear Solid 2: Sons of Liberty: $7
• Curious George: $12
• Ace Combat 4: Shattered Strike: $3
• Sonic Unleashed: $10
• NBA Live 06: $3
• Terminator Dawn of Fate: $4
• Biathlon 2008: $3
• Tiger Woods PGA Tour 2005: $3
• ESPN International Track & Field: $3
• SOCOM US Navy Seals: $4
• 2x Mojo: $3 each
• Tiger Woods PGA Tour 07: $4
• 2x God of War: $9 each
• Tokyo Extreme Racer Drift 2: $12 shipped
• Eighteen Wheeler: American Pro Trucker: $3
• Suzuki TT Superbikes: $4
• Red Faction: $3
• SOCOM 3: Navy Seals: $4
• Tom Clancy's Splinter Cell Chaos Theory: $14
• World Championship Poker: $2
• Tiger Woods PGA 2002: $3
• Tiger Woods PGA Tour 06: $3
• Trivial Pursuit Unhinded: $3
• 2x Medal of Honor Frontline and Risining Sun: both for $10 shipped per lot of 2
• Warriors of Might and Magic: $5
• Godai Elemental Force: $3
• Tiger Woods PGA Tour 08: $3
• Hitman 2: Silent Assassin: $4
• MLB 2004: $2
• 2x MLB 2005: $5 each
• Minority Report: $3
• Kingdom Hearts: $6
• Ford Racing 2: $7
• ATV Offroad Fury: $3
• Tak and the Guardians of Gross: $7
• Tom Clany's Splinter Cell: $5
• 2x Dragon Ball Z Budokai: $8 each
• Brothers in Arms: Earned in Blood: $3
• NBA 2K7: $5
• Smackdown! Vs. Raw (Greatest Hits): $8
• MVP Baseball 2004: $3
• 2x Madden 2002: $2 each
• Hard Hitter Tennis (Movie Gallery Rental Version): $15 (Price very negotiable, couldn't find any comparisons due to it being a Movie Gallery Rental Version)
• Nascar 06: $4
• MLB 09 The Show: $2
• Madden 2003: $2
• NBA Live 09: $2
• Nascar 09: $7
• High Heat MLB: $4
• NCAA March Madness 2003: $2
• Jeremy McGrath Supercross World: $3
• Dave Mirra Freestyle BMX 2: $7
• Simpsons Skateboarding: $15 shipped
• ATV Offroad Fury: $3
• Tiger Woods PGA Tour 2004: $5
• NHL 2002: $2
• Bionicle Heroes: $5
• Alter Echo: $5
• Triple Play Baseball: $3
• Alias: $4
• Madden 2001: $2
• PS2 Controllers
  • Gray Controller: $10
  • Blue Controller: $13
  • Purple Viper 2 Controller: $10
  • Translucent Wired Controller: $10
  • Wireless Controller: I can't test it so it's free plus shipping
• Sly Cooper PS2 Prima's Official Strategy Guide - $50 shipped

PS2 - Disk Only:

• Playstation Magazine Issue 71 Disk: $8
• Playstation Magazine Issue 71 Disk: $8
• Playstation Magazine Issue 76 Disk: $4, all three Playstation Magazine disks for $20 shipped
• Marvel Ultimate Alliance: $3
• Sonic Riders - Zero Gravity: $12 shipped
• Sega Superstars Tennis: $3
• Horsez: $2
• Lara Croft: Tomb Raider - The Angel of Darkness: $3
• Tomb Raider III: The Adventures of Lara Croft: $3
• Conflict Desert Storm: $1
• Ready to Rumble Boxing: $3
• Celebrity Deathmatch: $4
• Starsky and Hutch: $1
• World Championships Cards: $1
• NBA Lifestyle 2003: $1
• NBA 2K2: $2
• MLB 2K5: $1
• MLB 07 The Show: $1
• MLB 06 The Show: $1
• Backyard Baseball: Play with the Pros as Kids!: $2
• Triple Play Baseball: $2
• MVP Baseball 2004: $2
• SOCOM US Navy Seals: $1
• Socom 3 US Navy Seals: $1
• Superbike World Championship (SBK): $2
• Summer Athletics: The Ultimate Challenge: $1
• Stuntman Ignition: $1
• Madden 06: $1
• Madden 07: $1
• Madden NFL 08: $2
• Madden NFL 06: $1
• Madden NFL 2005: $1
• Madden NFL 07: $1
• Madden 2004: $1
• NFL Gameday 98: $2
• Gretzky NHL 06: $2
• NHL 2K6: $2
• Ratatouille: $3
• 007: Everything or Nothing: $3
• 007 Nightfire: $8 shipped
• 007: Quantum of Solace: $3
• Gran Turismo 3: $1
• Motocross Mania: $1
• Greg Hastings Tournament Paintball Max’d: $2
• Out of the Chute: $3
• Nicktoons Unite!: $3
• Burnout 2 Point of Impact: $3
• Corvette Evolution GT: $1
• MotoGP 3: $3
• Battlefield 2 Modern Combat: $1
• Bad Boys Miami Takedown: $1
• Happy Feet: $2
• Motor Storm Arctic Edge: $4
• Backyard Football 09: $2
• Dancing with the Stars: $1
• Call of Duty: Finest Hour: $2
• NCAA March Madness 2004: $1
• Star Wars Episode III: Revenge of the Sith: $4
• Dormax 2: Dance Dance Revolution: $2
• Tiger Woods PGA Tour 2001: $1
• G.I. Joe The Rise of Cobra: $3

PS3 Games:

• Lost Planet 2 (Disk Only, in GameStop case): $5
• Legendary: $7
• 2x Assassin's Creed: $3 each
• 3x Assassin's Creed III PS3: $3 each
• Rage: $4
• Infamous: $4
• Beowulf the Game: $4
• L.A. Noire: $10
• The Elder Scrolls V: Skyrim: $13 shipped
• Pro Evolution Soccer 2013: $13
• Killzone 2: $3
• Call of Duty Black Ops II (No Manual): $10
• Call of Duty: MW3 (Disk Only): $3
• Call of Duty 4 Modern Warefare: $3
• Batman Arkham Asylum: $4
• Darksiders: $10 shipped
• Uncharted Drake's Fortune: $3
• Uncharted 2: $3
• 2x Uncharted 3: $3 each
• Tomb Raider (Disc Only in GameStop case): $4
• The Last of Us (Disc Only): $4
• Brothers In Arms: Hell's Highway: $6
• Red Dead Redemption: $10
• Red Dead Redemption (Disc Only): $5
• The Amazing Spiderman 2: $20
• Batman: Arkham Asylum: $4
• The Godfather II: $13
• Monopoly: $13
• GTA IV (4) (Disc Only): $4
• GTA V (5): $10
• Naruto Ultimate Ninja Storm Generations: $4
• Tiger Woods PGA Tour 08: $4
• Tiger Woods PGA Tour 12 Masters: $7
• MLB 07 The Show: $3
• MLB 10 The Show: $3
• MLB 12 The Show: $2
• NBA 2k8: $2
• Madden 07: $5
• Madden 08: $4
• Madden 10: $2
• Madden 12: $3
• Madden 13: $2
• Madden 15: $3
• Madden 25: $4
• NHL 09: $2

PS4 Games:

• Star Wars Battlefront Deluxe Edition: $9 (Includes Magmatrooper Galactic Connexion)
• Battlefield Hardline BNIB (Sealed): $18 shipped
• Need for Speed Payback: $7
• PlaystationVR Demo Disk 3: $5

GBA Games:

• Harry Potter and the Chamber of Secrets: $5
• Rugrats: Castle Capers: $5
• Pac Man Collection: $9 shipped
• Mario Vs Donkey Kong: $20 shipped

Loose DS/3DS Games:

• Lego Star Wars III (3DS): $5
• LEGO Pirates of the Caribbean (3DS): $4
• Authentic Pokemon Heartgold (DS): $110 shipped with insurance
• LEGO Batman 2: DC Super Heroes (DS): $3
• LEGO Star Wars: Complete Saga (DS): $6
• Zhu Zhu Pets (DS) and Zhu Zhu Puppies (DS): $3.50 for both
• 2x Pirates of the Caribbean: Dead Man's Chest (DS): $3 each
• Harry Potter Years 1-4 (DS): $4
• Mario Party DS (DS): $12 shipped
• Spider Man: Web of Shadows (DS): $10 shipped
• 2x Mario Vs Donkey Kong Mini Land Mayhem (DS): $10 shipped each
• Crafting Mama (DS): $8 shipped
• Let’s Play Garden (DS): $2
• Cooking Mama (DS): $12 shipped
• 2x Moshi Monsters: Moshling Zoo and Moshi Monsters Theme Park (DS): $2 for each lot of two
• Namco Museum (DS): $7 shipped
• Drama Queen (DS): $2
• Satisfashion: Rock the Runway (DS): $1
• Lovely Lisa and Friends (DS): $2
• iCarly (DS): $1
• Style Lab: Jewelry Design (DS): $1
• Petz Fashion Dogz & Cats (DS): $1
• Barbie Horse Adventure (DS): $5 shipped
• Phineas and Ferb (DS): $2
• Carnival Games (DS): $3
• Power Rangers Samurai (DS): $7 shipped
• TMNT (DS): $5
• Monster Jam: Path of Destruction (DS): $2
• DaGeDar (DS): $3
• Cars 2 (DS): $3
• Madagascar Kartz (DS): $3
• Nickolodeon Team Umizoomi (DS): $10
• Scooby Doo and the Spooky Swamp (DS): $11
• New Super Mario Bros (DS): $9
• Mario Kart (DS): $10
• Guitar Hero: On Tour (DS): $3
• Wiffle Ball (DS): $1
• Crash of the Titans (DS): $10
• 2x Up (DS): $2 each
• FIFA 08 (DS): $3
• Showtime Championship Boxing (DS): $3
• Asphalt 2 (DS): $4
• 2x Carnival Games (DS): $2 each
• Goosebumps Horrorland (DS): $8
• Tony Hawk’s Motion (DS): $3
• Harlem Globetrotters World Tour (DS): $3
• Cooking Mama 3: Shop and Chop (DS): $10
• Monster High Ghoul Spirit (DS): $3
• Little plastic DS cartridge cases (3x for now but I think have more somewhere): $0.50 each

CIB 3DS/DS Games and Others (CIB unless stated otherwise):

• Pictures (Some pictured have sold, but anything still listed with prices here is still available)
• Dogs and Cats: Best Friends (DS): $3
• Zhu Zhu Puppies: $3
• Jewelry Design (DS): $2
• Up (DS): $4
• Wipeout The Game (DS): $3
• Tony Hawk's Proving Ground (DS): $8
• World Championship Games: A Track and Field Event (DS): $5
• Cars 2 (3DS): $11 shipped
• New Super Mario Bros 2 (3DS) (No Manual): $20 shipped
• Angry Bird Star Wars (3DS) (No Manual): $4
• LEGO Star Wars: The Force Awakens (3DS): $5

Gamecube Games: (All CIB unless otherwise stated)

• Pictures
• Backyard Football (Disk only, in GameStop case): $3
• Madden NFL 05: $2
• Madden NFL 07: $3
• All Stars Baseball 2002: $4
• NHL 2005: $3
• MVP Baseball 2004 (Disc Only): $4

Wii Games and Items: (All Games CIB unless otherwise stated)

• Wii Fit Balance Board: $15 local pickup in MA or $15 plus shipping (can bundle with Wii Fit for another $3 or Wii Fit Plus for another $5)
• Wii Fit Balance Board in Box: $18 or $18 plus shipping (can bundle with Wii Fit for another $3 or Wii Fit Plus for another $5)
• Wii UDraw Tablet (Untested atm): $5
• Wii MotionPlus Adapter Authentic - Brand New In Box, Sealed: $27
• Link's Crossbow training with 2 Wii Zappers/Guns: $25
• Just Dance: $7
• Just Dance 2: $5
• Just Dance 3 Best Buy Exclusive: $7
• Just Dance 3 Target Exclusive: $7
• Guitar Hero: World Tour: $8
• Disney Infinity (No Manual): $4
• Disney Sing It: $3
• Cooking Mama: Cook Off: $6
• Wii Fit: $5
• Wii Sports Resort: $30
• Wall-E: $4
• Despicable ME - The Game: $4
• We Ski: $4
• Wipeout The Game: $3
• Winter Sports - The Ultimate Challenge: $6
• Angry Birds Trilogy: $12
• Deca Sports: $6
• SimCity Creator: $4
• Gummy Bears: Magical Medallion: $4
• Cars (Disk Only, in GameStop Case): $10 shipped
• Monster Trucks Mayhem: $4
• Dragon Flame: Wrath of Fire: $3
• Wii Sports (Disk Only): $20 shipped
• 2x Wii Play: $6 each
• Wipeout The Game: $5
• The Price is Right: $7
• Country Dance: $15
• Cardio Workout: $5
• Carnival Games: Mini-Golf: $15
• Sims 3: $6
• Indiana Jones Staff of Kings Wii: $7
• James Bond 007: Quantum of Solace: $6
• LEGO Batman 2: $6
• WWE All Stars: $12
• WWE '12: $6
• Guitar Hero III Legends of Rock: $15
• Happy Feet: $4
• Fantasy Aquarium World: $6
• Cloudy with a Chance of Meatballs: $6
• Deadrising Chop Until you Drop: $5
• Medal of Honor Vanguard: $3
• Resident Evil 4: $7
• Star Wars Force Unleashed II: $10
• Call of Duty World At War: $5
• Mountain Sports: $7
• New Carnival Games: $11
• Super Mario Galaxy: $27
• Wipeout The Game: $4
• Shaun White Snowboarding - Road Trip: $3
• WeSki & Snowboard: $17
• Epic Mickey 2: The Power of Two: $5
• Thrillville Off The Rails: $4
• SpongeBob Squarepants: Robotic Revenge: $8
• LEGO Star Wars: The Complete Sage: $6
• The Smurfs Dance Party: $3
• Skylanders Giants: $3
• Skylanders Trap Team: $3
• Go Diego Go Safari Rescue (CIB) and Go Diego Go Great Dinosaur Rescue (Disk Only): (*Both discs do not work!! Need resurfacing) $2 plus shipping for both (the case and manual of Safari Rescue with the not-working Safari Rescue and Dinosaur discs)

Wii U

• Shantae: 1/2 Genie Hero Risky Beats Edition (with box and soundtrack): $40

Skylanders Figures/Accessories:

• Cynder (Giants): $4
• Drill Sergeant (Giants): $3
• Drobot (Spyro's Adventure): $3
• Gill Grunt (Giants): $3
• Bouncer (Giants): $4
• Hot Head (Giants): $4
• Fright Rider (Giants): $3
• Jet Vac (Giants): $4
• Shroomboom (Giants): $4
• Eruptor (Giants): $4
• Sonic Boom (Giants): $3
• Prism Break (Giants): $3
• Tree Rex (Giants): $3
• Snap Shot (Trap Team): $3
• Food Fight (Trap Team): $3
• Traptanium Portal: $10
• Skylanders Giants Portal: $8
• Skylanders Spyro's Adventure Zipper Carry Bag: $10

PC:

• Family 6 Pac Volume 1: $10 shipped
• Driver: You Are The Wheelman: $9 shipped
• I Spy Fantasy (Complete): $6
• I Spy Fantasy (Disc Only): $4
• Centipede: $4
• Sins of a Solar Empire: Game of the Year Edition: $10
• Company of Heroes: $5
• Tiger Woods PGA Tour 06: $6
• Battlezone PCGamer: $12
• Sid Meier's Civilization IV (Disc 1, Disc 2, and Manual): $5
• Sid Meier's Civilization IV GOTY Edition: $12
• Cossacks II: Battle for Europe: $10
• Sim Earth: $9
• SimAnt (Disc Only): $4
• Arthur's 2nd Grade (Both Discs): $5
• Air Hogs RC Flight Simulator (Disc Only): $9
• Stanley's Sticker Stories (Disc Only): $1
• Golden Books Interactive Encyclopedia (Disc Only): $1
• Ultimate Writing and Creativity Center (Disc Only): $5
• Jump Start Math, Explorers, and Reading (3 Disc Lot): $25
• Fairly OddParents: Breakin' Da Rules (Disc Only): $9
• Reader Rabbit Phonics and Ages 6-9 (2 Disc Lot): $10
• Edu Science (Disc Only): $3
• Where In The World Is Carmen Sandiego? (Disc Only): $5
• Scholastic's The Magic School Bus Explores the Human Body and Animals (2 Disc Lot): $10
• My First Amazing History Explorer: $3
• Explorers Of the New World: $2
• Richard Scarry's Best Reading Program and How Things World in Busytown (2 Disc lot) $30 shipped
• NHL 2001: $4
• Madagascar: $5

VR:

• View Master Virtual Reality: Space Experience Pack: $5

Other Items:

• Mind Food Surfing PC (Disc Only): $2
• VDWL-G120 D-Link Airplus G Wireless USB Adapter (Disc Only): $2
• Microsoft Office 2000 Professional (Disc Only): $5
• Legends Of Wrestemania Official Strategy Guide - Xbox 360, PS3: $13 shipped
• Mystery Quest: Curse of the Ancient Sprits (DS, Case and Manual only): $2
• Large DS Carry/Travel Case (Dark Blue): $ 7plus shipping
• Game Boy Advance Case (Black with Pink outline): $15 shipped
• Mini NES with 2 Controllers: $120 shipped
• White Wii with original Gray Stand.(no wires or controllers): $65 shipped with choice of any game listed above that's $5 or less
• Red Wii with Wires, Sensor Bar, Installed Excitebike, and 1 Authentic Controller and Nunchuck: $100 shipped with choice of any game listed above that's $5 or less
• Crimson DS Lite with Charger (No Stylus or GBA Slot Cover): $45 shipped
• White 200GB Xbox 360 with Power Cord and 1 Authentic Controller (HDMI Compatible but no HDMI cord included): $75 shipped

Please note: I cannot test the VR game because I don't have a phone that works with it, but if you purchase an untested game and it doesn't work you'll receive a refund for the item.
As far as sealed Pokémon TCG product goes, I’m open to anything since my sealed collection’s pretty small rn, but mainly things 2016 or newer. Also potentially interested in full arts (i.e. FA Stoutland, not FA GXs) from Cosmic Eclipse that are valued at $10 or under.

Shipping is going to be $5. Feel free to bundle games together for better prices. I am happy to provide any pictures if requested!
​

	B	C	D
**1**	product-name	console-name	Price
**2**	Pokemon Blue	GameBoy	25
**3**	Backyard Basketball	GameBoy Advance	5
**4**	Backyard Football	GameBoy Advance	5
**5**	Backyard Football 2006	GameBoy Advance	4
**6**	Backyard Hockey	GameBoy Advance	6
**7**	Donkey Kong Country	GameBoy Advance	14
**8**	Dragon Ball Z Supersonic Warriors	GameBoy Advance	11
**9**	Dragon Ball Z Taiketsu	GameBoy Advance	6
**10**	Fire Pro Wrestling 2	GameBoy Advance	25
**11**	Golden Nugget Casino	GameBoy Advance	3
**12**	Madden 2002	GameBoy Advance	4
**13**	Mario Golf Advance Tour	GameBoy Advance	20
**14**	Mario Kart Super Circuit	GameBoy Advance	13
**15**	Monster Trucks Quad Fury Double Pack	GameBoy Advance	4
**16**	Power Rangers SPD	GameBoy Advance	6
**17**	Road Rash Jailbreak	GameBoy Advance	8
**18**	Shrek Hassle in the Castle	GameBoy Advance	5
**19**	Soccer Mania	GameBoy Advance	4
**20**	SpongeBob SquarePants Revenge of the Flying Dutchman	GameBoy Advance	6
**21**	Super Monkey Ball Jr.	GameBoy Advance	6
**22**	Teen Titans	GameBoy Advance	10
**23**	Texas Hold Em Poker	GameBoy Advance	3
**24**	Tony Hawk 4	GameBoy Advance	6
**25**	WWE Road To WrestleMania X8	GameBoy Advance	8
**26**	WWF Road to Wrestlemania	GameBoy Advance	8
**27**	NBA Showtime	GameBoy Color	5
**28**	Scooby Doo Classic Creep Capers	GameBoy Color	7
**29**	Sesame Street Sports	GameBoy Color	6
**30**	Turok Rage Wars	GameBoy Color	8
**31**	Turok Rage Wars	GameBoy Color	8
**32**	WWF Betrayal	GameBoy Color	11
**33**	Backyard Baseball	Gamecube	13
**34**	Backyard Football	Gamecube	5
**35**	Freestyle Street Soccer	Gamecube	5
**36**	Harry Potter Prisoner of Azkaban	Gamecube	9
**37**	Harry Potter Quidditch World Cup	Gamecube	7
**38**	Lord of the Rings Return of the King	Gamecube	10
**39**	Mario Party 7	Gamecube	50
**40**	NHL 06	Gamecube	4
**41**	Outlaw Golf	Gamecube	5
**42**	Super Mario Sunshine	Gamecube	63
**43**	Super Monkey Ball Adventure	Gamecube	18
**44**	Swingerz Golf	Gamecube	5
**45**	WWE Crush Hour	Gamecube	8
**46**	WWE Wrestlemania X8	Gamecube	9
**47**	Arch Rivals	NES	8
**48**	Jeopardy 25th Anniversary	NES	5
**49**	Wheel of Fortune	NES	6
**50**	WWF Wrestlemania	NES	8
**51**	WWF Wrestlemania Steel Cage Challenge	NES	9
**52**	Mario Kart 7	Nintendo 3DS	13
**53**	Pokemon Rumble Blast	Nintendo 3DS	10
**54**	Super Mario 3D Land	Nintendo 3DS	11
**55**	FOX Sports College Hoops '99	Nintendo 64	6
**56**	Kobe Bryant in NBA Courtside	Nintendo 64	10
**57**	Madden Football 64	Nintendo 64	10
**58**	Mike Piazza's Strike Zone	Nintendo 64	7
**59**	NBA In the Zone '98	Nintendo 64	3
**60**	NBA Jam 2000	Nintendo 64	18
**61**	Pokemon Snap	Nintendo 64	24
**62**	Pokemon Stadium	Nintendo 64	21
**63**	Super Mario 64	Nintendo 64	40
**64**	Super Mario 64	Nintendo 64	40
**65**	Super Smash Bros.	Nintendo 64	38
**66**	Voice Recognition Unit	Nintendo 64	10
**67**	WCW Backstage Assault	Nintendo 64	10
**68**	WCW Mayhem	Nintendo 64	7
**69**	WCW vs NWO Revenge	Nintendo 64	10
**70**	Wipeout	Nintendo 64	7
**71**	WWF No Mercy	Nintendo 64	33
**72**	WWF Warzone	Nintendo 64	5
**73**	WWF Wrestlemania 2000	Nintendo 64	15
**74**	Backyard Sports: Sandlot Sluggers	Nintendo DS	5
**75**	Bakugan Battle Brawlers	Nintendo DS	4
**76**	Big Brain Academy	Nintendo DS	3
**77**	Cars	Nintendo DS	5
**78**	Chaotic: Shadow Warriors	Nintendo DS	4
**79**	Club Penguin Elite Penguin Force: Herbert's Revenge	Nintendo DS	4
**80**	DaGeDar	Nintendo DS	3
**81**	Deal or No Deal	Nintendo DS	3
**82**	Fab 5 Soccer	Nintendo DS	5
**83**	Johnny Test	Nintendo DS	9
**84**	Mario and Sonic Olympic Winter Games	Nintendo DS	6
**85**	Mario Hoops 3 on 3	Nintendo DS	10
**86**	Mario Party DS	Nintendo DS	12
**87**	Metroid Prime Hunters	Nintendo DS	8
**88**	Micro Machines V4	Nintendo DS	6
**89**	Monster Jam: Path of Destruction	Nintendo DS	6
**90**	New Super Mario Bros	Nintendo DS	12
**91**	Pokemon SoulSilver Version	Nintendo DS	87
**92**	Power Play Pool	Nintendo DS	4
**93**	Rubik's World	Nintendo DS	3
**94**	Sonic Classic Collection	Nintendo DS	12
**95**	Sonic Colors	Nintendo DS	11
**96**	Tecmo Bowl Kickoff	Nintendo DS	9
**97**	Yoshi's Island DS	Nintendo DS	13
**98**	102 Dalmatians Puppies to the Rescue	Playstation	12
**99**	ATV Quad Power Racing	Playstation	3
**100**	Crash Bash	Playstation	15
**101**	CTR Crash Team Racing	Playstation	17
**102**	Dragon Ball Z Ultimate Battle 22	Playstation	5
**103**	Dukes of Hazzard Racing for Home	Playstation	5
**104**	FIFA 2003	Playstation	5
**105**	Knockout Kings 2000	Playstation	4
**106**	MLB 2003	Playstation	4
**107**	Rocket Power Team Rocket Rescue	Playstation	4
**108**	Tekken 3	Playstation	17
**109**	Treasure Planet	Playstation	6
**110**	WWF Smackdown 2: Know Your Role	Playstation	10
**111**	All-Star Baseball 2005	Playstation 2	4
**112**	American Chopper 2 Full Throttle	Playstation 2	4
**113**	Are You Smarter Than A 5th Grader? Make the Grade	Playstation 2	3
**114**	Arena Football	Playstation 2	4
**115**	Backyard Baseball 09	Playstation 2	4
**116**	Backyard Baseball 2007	Playstation 2	4
**117**	Backyard Basketball	Playstation 2	5
**118**	Backyard Football	Playstation 2	5
**119**	Backyard Football 09	Playstation 2	4
**120**	Backyard Wrestling	Playstation 2	9
**121**	Ben 10 Protector of Earth	Playstation 2	5
**122**	Burnout Dominator	Playstation 2	6
**123**	Cabela's Outdoor Adventures	Playstation 2	4
**124**	Call of Duty Finest Hour	Playstation 2	5
**125**	College Hoops 2K7	Playstation 2	5
**126**	Crash Bandicoot The Wrath of Cortex	Playstation 2	12
**127**	Crash Twinsanity	Playstation 2	10
**128**	Duel Masters	Playstation 2	5
**129**	ESPN NBA 2K5	Playstation 2	3
**130**	ESPN NFL 2K5	Playstation 2	10
**131**	Fantastic 4	Playstation 2	4
**132**	FIFA 08	Playstation 2	5
**133**	FIFA 2004	Playstation 2	4
**134**	Gran Turismo 4	Playstation 2	6
**135**	Greg Hastings Tournament Paintball Maxed	Playstation 2	4
**136**	High Heat Baseball 2004	Playstation 2	4
**137**	High Rollers Casino	Playstation 2	3
**138**	Hot Shots Tennis	Playstation 2	4
**139**	Legends of Wrestling	Playstation 2	5
**140**	Lord of the Rings Third Age	Playstation 2	8
**141**	Lord of the Rings Two Towers	Playstation 2	5
**142**	Madden 2006	Playstation 2	3
**143**	Madden 2007	Playstation 2	3
**144**	Madden NFL 10	Playstation 2	6
**145**	Major League Baseball 2K5	Playstation 2	3
**146**	Major League Baseball 2K9	Playstation 2	3
**147**	Midnight Club 3 Dub Edition	Playstation 2	17
**148**	MLB 06 The Show	Playstation 2	4
**149**	MLB 08 The Show	Playstation 2	3
**150**	NASCAR Chase for the Cup 2005	Playstation 2	6
**151**	NASCAR Thunder 2003	Playstation 2	4
**152**	NBA 2K10	Playstation 2	6
**153**	NBA Live 2004	Playstation 2	3
**154**	NBA Live 2005	Playstation 2	4
**155**	NBA Live 2006	Playstation 2	4
**156**	NBA Live 2007	Playstation 2	3
**157**	NBA Shootout 2003	Playstation 2	4
**158**	NBA Street	Playstation 2	10
**159**	NBA Street [Greatest Hits]	Playstation 2	7
**160**	NBA Street Vol 3	Playstation 2	16
**161**	NCAA Basketball 09	Playstation 2	11
**162**	NCAA Football 2006	Playstation 2	9
**163**	NCAA March Madness 2004	Playstation 2	4
**164**	Need for Speed Most Wanted	Playstation 2	10
**165**	Need for Speed Underground	Playstation 2	9
**166**	Need for Speed Underground 2	Playstation 2	11
**167**	NFL Gameday 2003	Playstation 2	4
**168**	NHL Hitz Pro	Playstation 2	8
**169**	Pimp My Ride	Playstation 2	5
**170**	ProStroke Golf	Playstation 2	3
**171**	Road Trip	Playstation 2	12
**172**	SOCOM US Navy Seals	Playstation 2	4
**173**	SOCOM US Navy Seals [Greatest Hits]	Playstation 2	3
**174**	Spy Hunter Nowhere to Run	Playstation 2	5
**175**	Stacked With Daniel Negreanu	Playstation 2	3
**176**	Test Drive Unlimited	Playstation 2	7
**177**	Tiger Woods 2004	Playstation 2	4
**178**	Tiger Woods 2006	Playstation 2	2
**179**	Tiger Woods 2006	Playstation 2	3
**180**	TNA Impact	Playstation 2	5
**181**	Ultimate Board Game Collection	Playstation 2	3
**182**	World Championship Paintball	Playstation 2	5
**183**	World Series Of Poker 2008	Playstation 2	3
**184**	WWE Smackdown Shut Your Mouth	Playstation 2	13
**185**	WWE Smackdown vs. Raw 2006	Playstation 2	13
**186**	WWE Smackdown vs. Raw 2008	Playstation 2	8
**187**	WWE Smackdown vs. Raw 2009	Playstation 2	8
**188**	WWE Smackdown vs. Raw 2010	Playstation 2	8
**189**	WWF Smackdown Just Bring It	Playstation 2	8
**190**	2010 FIFA World Cup South Africa	Playstation 3	4
**191**	Batman: Arkham Asylum	Playstation 3	5
**192**	Batman: Arkham Asylum [Game of the Year]	Playstation 3	5
**193**	Batman: Arkham City	Playstation 3	5
**194**	Battlefield 3 Limited Edition	Playstation 3	3
**195**	Battlefield: Bad Company	Playstation 3	4
**196**	Blazing Angels Squadrons of WWII	Playstation 3	5
**197**	Call of Duty 3	Playstation 3	9
**198**	Dead Space 2 [Limited Edition]	Playstation 3	9
**199**	Elder Scrolls IV Oblivion Game of the Year [Greatest Hits]	Playstation 3	8
**200**	End War	Playstation 3	5
**201**	Fast and the Furious: Showdown	Playstation 3	10
**202**	FIFA Soccer 11	Playstation 3	4
**203**	FIFA Soccer 13	Playstation 3	5
**204**	FIFA Street	Playstation 3	7
**205**	Fight Night Round 4 [Greatest Hits]	Playstation 3	10
**206**	God of War Collection [Greatest Hits]	Playstation 3	9
**207**	Gran Turismo 5 [XL Edition]	Playstation 3	7
**208**	Grand Slam Tennis 2	Playstation 3	7
**209**	Infamous	Playstation 3	5
**210**	L.A. Noire	Playstation 3	5
**211**	Lord of the Rings Conquest	Playstation 3	9
**212**	Madden NFL 11	Playstation 3	4
**213**	Madden NFL 12	Playstation 3	4
**214**	Madden NFL 25	Playstation 3	5
**215**	MLB 10 The Show	Playstation 3	4
**216**	MLB 12: The Show	Playstation 3	4
**217**	NBA 2K11	Playstation 3	6
**218**	NCAA Football 14	Playstation 3	105
**219**	Need for Speed Most Wanted Limited Edition	Playstation 3	9
**220**	NHL 09	Playstation 3	4
**221**	Rainbow Six Vegas	Playstation 3	5
**222**	The Beatles: Rock Band	Playstation 3	6
**223**	Uncharted 2: Among Thieves	Playstation 3	4
**224**	Uncharted 3: Drake's Deception	Playstation 3	5
**225**	Uncharted Drake's Fortune [Greatest Hits]	Playstation 3	3
**226**	WWE '12	Playstation 3	7
**227**	WWE '13	Playstation 3	9
**228**	WWE 2K14	Playstation 3	13
**229**	WWE Smackdown vs. Raw 2011	Playstation 3	12
**230**	Arch Rivals	Sega Genesis	7
**231**	Arnold Palmer Tournament Golf	Sega Genesis	5
**232**	Batman Returns	Sega Genesis	10
**233**	Bulls vs Lakers and the NBA Playoffs	Sega Genesis	3
**234**	College Football USA 96	Sega Genesis	3
**235**	FIFA International Soccer	Sega Genesis	5
**236**	Madden 97	Sega Genesis	5
**237**	Madden NFL '94	Sega Genesis	6
**238**	NBA Live 96	Sega Genesis	5
**239**	NHL 95	Sega Genesis	6
**240**	NHLPA Hockey '93	Sega Genesis	6
**241**	RBI Baseball 94	Sega Genesis	7
**242**	Sonic the Hedgehog 2	Sega Genesis	5
**243**	Sports Talk Baseball	Sega Genesis	6
**244**	Sports Talk Football '93 Starring Joe Montana	Sega Genesis	4
**245**	Taz-Mania	Sega Genesis	8
**246**	WWF Raw	Sega Genesis	10
**247**	Illusion of Gaia	Super Nintendo	22
**248**	Madden 97	Super Nintendo	3
**249**	Mortal Kombat 3	Super Nintendo	14
**250**	NBA Live 95	Super Nintendo	5
**251**	NBA Live 96	Super Nintendo	5
**252**	Street Fighter II	Super Nintendo	12
**253**	Super Mario World	Super Nintendo	17
**254**	Teenage Mutant Ninja Turtles Tournament Fighters	Super Nintendo	22
**255**	WWF Wrestlemania Arcade Game	Super Nintendo	10
**256**	Zelda Link to the Past	Super Nintendo	24
**257**	Backyard Football '10	Wii	7
**258**	Big League Sports	Wii	6
**259**	Deca Sports	Wii	10
**260**	Donkey Kong Country Returns	Wii	19
**261**	Fortune Street	Wii	14
**262**	Kidz Sports Basketball	Wii	6
**263**	Mario & Sonic at the London 2012 Olympic Games	Wii	13
**264**	Mario Super Sluggers	Wii	14
**265**	MLB Power Pros	Wii	5
**266**	MLB Power Pros 2008	Wii	8
**267**	New Play Control: Donkey Kong Jungle Beat	Wii	16
**268**	Wii Play	Wii	7
**269**	Wii Sports	Wii	22
**270**	Wii Sports Resort	Wii	25
**271**	Cabela's Deer Hunt 2004	Xbox	3
**272**	Digimon World 4	Xbox	8
**273**	Dragon Ball Z Sagas	Xbox	6
**274**	FIFA Street	Xbox	6
**275**	Finding Nemo	Xbox	4
**276**	Lemony Snicket's A Series of Unfortunate Events	Xbox	3
**277**	Major League Baseball 2K5	Xbox	4
**278**	Midnight Club 2	Xbox	4
**279**	Monster Garage	Xbox	3
**280**	NBA Inside Drive 2003	Xbox	3
**281**	NBA Inside Drive 2004	Xbox	3
**282**	NBA Inside Drive 2004	Xbox	5
**283**	NBA Street Vol 2	Xbox	8
**284**	NCAA Football 2005	Xbox	3
**285**	NCAA Football 2007	Xbox	5
**286**	Outlaw Golf: 9 More Holes of X-Mas	Xbox	4
**287**	Outlaw Volleyball	Xbox	4
**288**	Project Gotham Racing	Xbox	4
**289**	Showdown Legends of Wrestling	Xbox	7
**290**	The Simpsons Road Rage	Xbox	7
**291**	Top Spin	Xbox	4
**292**	WWE Wrestlemania 21	Xbox	6
**293**	All Pro Football 2K8	Xbox 360	19
**294**	FIFA Soccer 09	Xbox 360	3
**295**	Forza Motorsport 2	Xbox 360	5
**296**	Halo 4	Xbox 360	5
**297**	Hulk Hogan's Main Event	Xbox 360	5
**298**	Just Dance 3	Xbox 360	6
**299**	Kinect Adventures	Xbox 360	3
**300**	Madden 2008	Xbox 360	4
**301**	Madden 2009	Xbox 360	3
**302**	Madden NFL 13	Xbox 360	3
**303**	Mass Effect	Xbox 360	5
**304**	Mass Effect 2	Xbox 360	5
**305**	NBA Ballers Chosen One	Xbox 360	6
**306**	NBA Live 09	Xbox 360	4
**307**	Need for Speed Prostreet	Xbox 360	8
**308**	NFL Head Coach 2009	Xbox 360	22
**309**	Project Gotham Racing 3 [Platinum Hits]	Xbox 360	7
**310**	Sonic the Hedgehog	Xbox 360	15
**311**	Tiger Woods PGA Tour 13	Xbox 360	10
**312**	UFC 2009 Undisputed	Xbox 360	4
**313**	WWE Legends of WrestleMania	Xbox 360	11
**314**	FIFA 18	Xbox One	5
**315**	Madden NFL 18	Xbox One	5
**316**	NBA 2K16	Xbox One	3
**317**	NBA 2K18	Xbox One	4

Should You buy Apple stock or has the company run out of growth opportunities? What is my price prediction for Apple in the next years? Read until the end as I reveal my price target for Apple and also what I think will happen in the next couple of days, weeks & months!
~ Warning! Very Very Long Post~
Hello everyone! So, let’s go over some of the latest news on Apple before moving on to some fundamental and technical analysis, predictions and my price target for the stock in the next years.
So, let’s start with the news that Apple will cut the App Store commission in half for small app developers starting in the next days, this will impact developers who earn less than $1M annually from the App Store Sales. This is likely to lead to a small decline in commission revenues for Apple as around 98% of the app developers will qualify for this tax reduction from 30% to 15%, but all these small developers only contribute to about 5% of the estimated $50B in annual revenues from the App Store, so that would be only a $1.25B loss for the company, that is less than half a % of the company’s total net sales in the last fiscal year.
Also, these changes may lead to a potential long-term revenue boost, as it is likely this will lead to an increasing creation of apps which will generate more commissions in return.
Alongside this we also saw the company releasing the new MacBook’s with their first in-house chip, which promises faster video and imaging processing times, with both CPU and GPU performance up to 2 times faster than the latest PC laptop chip using just a fraction of the power consumption, with both of the macbooks promising big improvements in battery life. Apple is also expected to roll out even more in-house chips in future products, as they have started the 2-year breakup with Intel chips.
We also saw Morgan Stanley upgrading their base case to $191 at the end of November, as they have cited record lead times, supply chain forecasts and carriers demand as they expect that the company will sell around 270M iPhone in fiscal year 2021, that’s 50M more than the consensus and almost 30M more than the previous estimate of Morgan Stanley, with an average selling price of 842$, 9% more than the base case, as people tend to chose the more expensive and high tech versions of the lineup in this new 5G cycle.
The 5G super-cycle, which I believe is on the way, and will continue in the next years, as 5G become more available worldwide, could still be the biggest thing coming right away for the company with 5G smartphones expected to surpass 4G sales by 2024, with the average sale price of the 5G phones also coming down, helping them become more popular.
They also released an update iPad Pro and an all-new iPad Air in September which will also boost sales in this work-from-home environment that will keep the demand very high for this kind of products, just like the Macs. Alongside the increasing demand from the Wearables, Home & Accessories that include Air Pods, Apple TV, Apple Watch, and many more products.
But the biggest reasons I believe Apple is poised for continued growth, is primarily due to its services business, as they start to have more and more services like the Apple ONE BUNDLE, which include up to 6 services from (Apple Music, Apple TV+, Apple Arcade, Apple News+, the new Apple Fitness+ and the iCloud service) for a pretty reasonable price in my opinion starting from 15$ up to 30$/month, this could be a great option for families and even individuals who use their services a lot.
The latest services, Fitness+ just launched in the past days, and is a direct competitor to the likes of Peloton, as the service is available on the iPhone, iPad or even Apple TV. This also makes consumers buy the Apple Watch which syncs to the other devices to show you all kinds of information. The Fitness+ app just on its own is 8$/month or 80$/year which is less expensive than Peloton subscription which charges 13$ or even traditional gyms like Planet Fitness at 10$/month.
I think this will be the fastest growing sector for the company, as this aligns with the new macro trends, as the world is moving more and more to a digital approach to almost everything as consumer preferences, with more & more younger people reaching the point in life when they use these services start to align to this increasing digital approach.
We also shouldn’t forget the Apple Card & Apple Pay service among many others which also seem to gain from the move to digital & contactless payments, as this has been accelerated due to the current situation in the past year.
And one last piece of news, and the most recent one, is that Apple may have fast-tracked the Titan project. The Titan project is targeting a 2024 or 2025 push to develop an electric vehicle with advanced battery technologies, that will deliver significant increases in range at much lower costs than the current technologies while also having self-driving capabilities.
It’s reported they will not use the same technology as Tesla Full-Self-Driving feature, but will use LIDAR sensors, similar to those that we can find in the latest iPhone 12 PRO.
I think Apple can go 2 ways with this project, they can either use the huge amount of cash the company has to buy another car-maker like Ford, GM or any other car manufacturer expect Tesla and Toyota which do have a big market cap, so that they can fast-track the potential manufacturing of cars, or they can enter into a partnership with big companies like Tesla, Volkswagen or any other car marker to either produce cars or license their technology to this other car-makers which would ultimately and probably have higher margin-returns than the actual manufacturing of cars. Apple’s current overall gross margins stand at 38% vs the 15% average of the world top 10 automakers by market cap, which is significantly lower.
But this Apple Car thing is so long out, and there are so many unknowns, I will not try to predict anything related to this until there is more clarity on the subject.
And last, before moving on to some predictions, here are some of the highlights that we heard from the latest investors conference meeting, as the CEO, Tim Cook expressed optimism ahead with the launch of many new products and services, especially the Home Pod Mini and the new 5G iPhones, as these new iPhones include new LIDAR scanners that greatly improve the camera capabilities, as the iPhone as seen very positive reviews. We also saw the Senior VP and CFO, Luca Maestri give us great outlook for the company as they expect the installed devices base to continue to growth despite already being at an all-time high as they have over 585M paid subscriptions on their platforms and expect this to surpass 600M by the end of 2020.
I also researched and found what products we can see in the near future, with the first half of 2021 bringing new iMacs, the AirPods3 and the iPad Pro, while in the FALL event we will probably get the new iPhone 13 alongside the iPhone SE PLUS and the Watch Series 7 with more products coming later in 2021 or that don’t have an estimated release date like the Air Pods Pro, the Air Tags and the iPad Mini 6.
So, before even starting, you should know that I am bull on Apple but I am willing to hear other opinions so don’t be afraid to leave a comment down below.
I have made some predictions based on the growth rate of the company, the latest plans announced by them and used some estimates. So, keep in mind this are only projections and are calculated by myself, this is not an investment advice and you should do your own research.
This are my 2025 projections for Apple, let’s take a closer look at them, each on their own.
So, in term of revenues, Apple has 5 big sources of revenue, which saw an overall increase of 6% despite lagging sales in the iPhone. The biggest revenue is by a big margin the iPhone right now with over $137B in revenue in the fiscal year ending in September. I expect to see the iPhone sales increasing in the next years, especially in 2021, with the new 5G iPhone creating a super-cycle for the company, as most iPhone users, including myself here, as I will upgrade from my iPhone X, will switch to this new product. The iPhone sales have decreased in the last couple of years by 14% and 3% as a result of the product not having big improvements, as well as iPhone usually starting to last longer than previous models, so I expect to see a 12% increase in sales next year and a gradual decrease in the growth of sales as more people upgrade, ending with just a 5% growth in iPhone sales in 2025.
The next revenues stream is from the Mac, which has seen an increase in the past 2years, with revenues topping $28B this year after the huge demand from the work from home consumers. I expect this trend to continue as they plan to continue to launch better products and I can see the company having a similar growth next year before starting to decline slightly until 2025, also ending with a 5% growth.
The iPad is currently the smallest revenue stream for Apple but has also seen an increase in demand in the past 2 years with a 13% average increase in revenues. I also expect the iPad to continue to grow in the next couple of years, especially with the learn-from-home environment for kids, and even after this period ends, the transformation for learning will implicate more digital usage. I expect the iPad to see some similar growth to the Macs, especially with the latest generation also bringing a new iPad air to the market.
The 4th revenue stream and the fastest growing in the past 2 years, with an average growth of 33% are the wearables, home & accessories revenues. This have topped $30B this year, as Apple has also just launched the Apple Watch series 6 and also feature other great products like Apple TV, the Air Pods the Home Pod and the Home Pod mini alongside other third-party accessories.
I gave this revenue stream a growth of 20% starting next year with a gradual decrease to around 8% by 2025, as I believe this will become more & more popular as they start to have more vertical integration.
And last, but by no means least, the revenue stream that I expect to grow the most and the fastest is the revenue from the services that Apple gets. This includes revenues from Apple Care, Advertising, Cloud Services, Payment Services like Apple Card & Apple Pay and of course the digital content which includes fees from the App Store alongside subscription-based revenue including the new Apple One Bundle and Apple Fitness+ alongside the already know Apple Arcade, Apple Music, Apple News+, Apple TV+ and hopefully I don’t forget any others.
So, I expect this to become the clear 2nd biggest revenue stream for Apple by 2025, as I expect this to grow more than 20% next year, mainly due to the Apple One Bundle and Apple Fitness+ followed up by a slightly decreasing growth, ending with a 10% increase in revenues in 2025.
I think this are fairly conservative base case scenarios for the revenues, as I expect them to continue to increase the other revenue streams and not have such a large percentage of the revenues coming from the iPhone sales as you can see in this chart.
In terms of expenses, I pretty much kept the same margins as in previous years, with a 68% expense ratio on product sales [ iPhone / iPad / Mac / WHA ] and 35% expense ratio on SERVICES, as this are way more lucrative.
In the past 3 years, the products gross margin was 32.7%, so I actually imply bigger expenses for the manufacturing and sales of products, as this is mostly impacted by the company’s supplier’s ability to make up for and demand, while for the services revenue, the gross margins for the last 3 years has been 63.5% on average, but I expect this to be more in-line with the 66% margin in this past year. So, if services manage to grow to about half the revenues from the iPhone, this will double the gross revenues, as every buck gained in the service revenues account for 2$ in the product sales.
So, I expect the total revenues for Apple to increase from $274B in 2020 to over $440B by 2025, increasing by approximately 10%/year, while I will keep the expense ratio pretty much in-line and have them increasing by 11%/year, this would bring the total gross for Apple to $177B, increasing mainly due to the services revenues as I said earlier. This growth is just above the 4year average, and below the 2018 levels, which we might see again with this 5G super-cycle and explosive growth in the services revenue.
I also think the company will continue to invest in both Capital Expenditure and Operating expenses.
I think the operating expenses will remain pretty much in line with the previous years, as this number has increased by 1% annually both in R&D and SG&A. So, I will keep the exact percentages from previous years, as I expect the revenue to increase, thus I don’t see a big increase percentage wise. This would account for over $60B in operating expenses by 2025 and over $11B in Capital Expenditures by 2025, as I expect this to increase, mainly due to the possible EV developments or investments in self-driving capabilities alongside other manufacturing capabilities. You can see that the Capex spending has been decreasing in the past years with just over $8.8B in payments for business acquisitions and the other traditional Capex spending. Some people may use the cash generated by investing activities as Capex, but that is more unreliable. I also can see the Capex going back up, so I wanted to be safe and implied a 10% growth.
This money would account for over $73B in expenses and would bring the profit for the company to almost $104B before I&T.
Moving on, let’s see what revenue and expenses the company has had in the past few years. We can see a decrease in I expense in the past few years as the company has been paying debt, but they have also been generating less money in this department, with an overall decrease in this department of more than 50% in the past year, way less than the amount from 2018. So, for safety reasons, I used a 10% decline in both revenues and expenses related to I, while increasing the other losses by 10%/year.
This would bring the company pre-tax $$$ to just over $104B in 2025.
Let’s move on to taxes. I know the Federal tax rate is 21% for the company, but the actual tax rate for the company was lower than 15% in the past year, mainly due to lower tax-rates on foreign earnings alongside tax-benefits and tax-settlements. The average tax rate has been just over 16% in the past 3 years, but with more and more of the revenues coming from outside the US, I think it’s safe to say that the company will have around a 15% tax rate by 2025, this obviously if nothing major changes in tax policy around the world.
So, Apple would have $88.6B in $$ after tax by 2025 and with the current outstanding shares standing at just under 17B, so I don’t even account for the company probably continuing to do share buybacks, this would mean a $5.22 future earnings/share. And with today’s price for Apple just around 136$, that would mean to company is trading at just over 26 times forward price to earnings.
I don’t think Apple will ever trade at a discount again, with the current PE standing at over 40, I believe this will eventually go down, probably to around 35, despite the increase in services revenue, which is highly valued by investors. I think we can see Apple trade somewhere near 35 times P/E in 2025, especially if something big happens with the EV project, this could be even higher, just look at Tesla which trades at insane P/E. Of course, we also have to take into consideration the dividends that will be received from owning the stock, as Apple has started to pay dividends almost a decade ago and has 9 years of dividend growth, with a 10% annual rate of growth in the past 5 years. Here is the dividend growth history for the company, as I also went conservative on this estimate and implied a 7% growth for the next 2 years, 6% for 2023 and 2024 and just 5% in 2025.
So here are my 3 price targets for the company, including dividends but not reinvested. My bear case scenario is that Apple will trade at almost 165$ which implies a return of over 21% by 2025, while my base case scenario would see Apple trading at 195$ with a return of capital of 43%. I will also make the bull case for Apple trading at 225$ by 2025 with dividends included, which would imply just over 65% in gains by then.
I think this is possible as Apple has also continued to buy back shares of the company on a constant basis, as they continue to an impressive campaign with over $72B worth of common stock repurchased in 2020. They continue to buy back shares at a very fast pace, having repurchased over 1.3B shares in 2019 and 2018, while also issuing less stock every year.
So here is the full spreadsheet that I have projected for Apple by 2025 and the breakdown of everything i estimated [ 1 / 2 ] , if you do have another opinion or a suggestion please leave a comment down below, I think I have been conservative in most of my projections, but feel free to give your opinion.
Keep in mind, these targets might sound ridiculous, but just look at the growth Apple has had in the last 5years. The company has increased in value by more 400% in just the past 5years and is over 100.000% up since it started trading. So yes, the valuation is mad right now for the company. So, are you willing to bet against Apple?
The company also has pristine financials, with more than $65B in total assets compared to total liabilities, and more than $38B in cash and cash equivalents.
So, what do I expect in the next couple of days, weeks and months for Apple?
Let’s look at this CHART, so starting with the stock split, Apple saw a correction within the September stock market pullback, in a buy the news & sell the event, after a huge runup post-announcement of the stock split. The stock entered a consolidation period, and didn’t have any big catalysts, especially with new iPhone lineup not being included in the Q4 results due to the late launch. The stock found some levels of resistance near the $120 levels that it struggled to get past but acted also as support after breaking them just before the recent news of the possible EV developments or self-driving-features to be licensed to other car manufacturers. After that news the stock spiked and has now reached the previous highs made before the stock split and is facing some resistance, if the stock pushes over $140 I think we can say that it broke the resistance at those levels and is not just a fake-out. But I think it’s likely that the stock will consolidate between 122 and 135$ in the next weeks until the next iPhone sales and quarterly results are released, as the stock has entered overbought territory again with an RSI over 70, the first time since the stock split.
So, what would I do? Well, I own Apple stock, and I would really add on any weakness that the stock shows before the next quarter earnings are released, as typically Q1 earnings are the best for the company due to increased holiday sales combined with the launch of new products. I think any entry below 130$ would be really nice to start and build a position or increase it if you already own the stock.
Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion on the stock market!
Have a great day and see you next time!