- Apple can more than double its stock price when investors fully understand its focus on services, Loup Ventures Gene Munster says.
- That would give Apple another trillion dollars in market cap, he says.
- Apple's entire business, including its hardware segment, will begin to operate as a services company to generate future growth, Munster says.
Apple bull Gene Munster told CNBC on Wednesday if you "look through the noise" about the company's decision to ax unit sales from future earnings reports, investors will see that the iPhone-maker's stock will reach $350 in three years.
That's more than double Apple's current share price of $169.10 and a moonshot from its initial offering of $22 on this date 38 years ago.
Munster upgraded Apple to a buy when the stock was just $4 in October of 2004.
"It's another trillion dollars to market cap" on top of its current $802.4 billion market cap, the Loup Ventures founder said confidently on "Fast Money."
Apple will stop reporting individual unit sales in future earnings reports as part of its efforts to build a brand as a services company, but Munster thinks investors have yet to fully grasp that concept. He believes, however, that they will "progressively understand" that it's not necessary to "sweat every quarter" and can depend on earnings growth as an Apple stockholder.
"I understand that that may be hard for some people to believe," Munster conceded, "but, ultimately, I think that that's the trajectory that this company is on."
Munster said that the 18 percent of global smartphone owners around the world "that are committed to Apple will stay committed" even through economic slowdowns by upgrading their hardware and buying more services. That's depending on initiatives like Apple's iPhone Upgrade Program that lets iPhone users get a new iPhone every year at a monthly fee.
He also has faith in that the company will break down the margins in its services and hardware departments.
Munster estimates that Apple's services sector makes up about 70 percent of its gross margins and hardware makes up about 30 percent gross margins.
"What we're thinking about is the entire business, the hardware pieces included, are going to start to operate like a services, a subscription type of business," he said.