Apple will likely reach a $2 trillion valuation in 2021, after the first 5G iPhones arrive on the market in early October and Apple’s services business reaches a valuation in the $600 billion range.

Those are among the predictions in a new note this week by Daniel Ives of Wedbush Securities, who raised his Apple price target from $425 to $450, while maintaining his “Outperform” rating. Apple’s stock, as of Tuesday afternoon, was trading at about $387 a share, and has hit multiple all-time highs in the month of July. The company’s market cap, meanwhile, stands at $1.676 trillion.

“We believe during 2021 Apple will be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years,” Ives wrote in the note. “In particular, we are seeing a continued demand snapback in China during the month of June and early July despite some speed bumps and the stage is setting up for a massive pent up iPhone 12 cycle heading into the Fall in this key region as well as globally.”

Ives continues to predict an "5G super cycle thesis" for this year’s iPhone models. He also made specific predictions about this year’s iPhones that are consistent with previous reporting: An announcement of the iPhones in mid-to-late September, a release in early October, and that “we believe there are 4 models being launched for iPhone 12 with a mix of 4G/5G with price points that potentially could be lower than $1,000 on some versions despite the additional 5G component.”

Also, Ives agrees with the recent reports that this year’s iPhones will not come with chargers or EarPods in the box, which will open up to Apple selling such devices separately.

Apple reportedly paid Samsung Display around $950 million, last quarter, in a penalty for “purchasing fewer OLED smartphone panels than required” under their agreement, Display Supply Chain Consultants reported earlier this week.

Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Image: Reuters.