apple (NASDAQ: AAPL) produces a variety of devices that are omnipresent in day to day life, but is it possible for the tech company to become even more ubiquitous? Kathyrn Huberty of Morgan Stanley thinks so. On March 2nd, Huberty maintained a Buy rating on Apple and raised her price target from $133 to $160.
According to an article published today on Fortune's website, the u.s. Department of Labor determined how Americans spend their time. Americans who own Apple products can use those products (presumably iPods, iPhones, iMacs/MacBooks, and Apple TV) throughout about one-third of the their day. This includes time spent socializing, working, and in education. However, Huberty believes Apple will be able to insert itself in the additional 40% of the day in which Americans are sleeping with the Apple Watch. Scheduled for release this month, the Apple Watch is rumored to be able to monitor sleep cycles. However, this is unconfirmed as some dispute that the watch's daily battery life impedes this function.
Huberty also believes that Apple can be used in the 5%-10% of the day Americans spend traveling. The analyst does not state that Apple will manufacture cars, but there is potential for Apple to incorporate its technologies into existing cars.
Huberty states, “[Technology companies] want their products and content to be ubiquitous and available everywhere, and/or they want their tools and devices to proliferate and become the preferred way to access content” in order to “to gain more of the users' attention” and to “make sure their competitors are locked out or do not lock them out of a medium to reach users.” She concludes, “As products and content becomes accessible anywhere, the only constraint left is time.”
Huberty estimates that Apple's market could grow from the current $800 billion to $3.4 trillion by 2020.
Kathyrn Huberty has a 74% overall success rate recommending stocks and a +19.5% average return per recommendation. She has rated Apple 62 times since January 2009, earning an 84% success rate recommending the tech stock with a +32.5% average return per Apple recommendation.
