Activist Investor Carl Icahn Posits Apple’s Worth is $1.4 Trillion, Not $700 Billion

Not long ago, we analysed the various acquisitions you could potentially make with Apple’s astounding market value – an impressive $700 billion. However, renowned activist investor Carl Icahn has countered this number, stating that Apple’s true worth is a colossal $1.4 trillion.

Icahn, known for his astute business manoeuvres and investment pluck, laid out his position in an open letter to Apple’s CEO Tim Cook. The core of Icahn’s argument rests on two bold predictions:

1. Asserting Apple’s worth at an eye-watering $1.4 trillion
2. Advocating for Apple’s massive cash reserve of $194 billion to be distributed to its shareholders

In fact, Icahn’s strategic calls for business reshapes are being echoed in his bold suggestions once again, after his successful advocacy last year for the separation of eBay and PayPal into two disparate business entities to spur growth. He holds approximately 1% of Apple’s shares and has previously urged Apple to share its cash pile with stakeholders.

In Icahn’s comprehensive letter, he explored his rationale: “in light of Apple’s exceptional success, we now believe Apple shares are undervalued at today’s price and worth around $240 each. Apple is primed to both enter and, in our belief, dominate two new categories – the television sector next year and the automobile industry by 2020 – with a combined potential market of $2.2 trillion.”

His statement was based on the presumption that mutual funds and hedge funds would need to correct their “misguided positions”, potentially leading to a de facto short squeeze. Furthermore, he asserted that the market undervalues Apple’s potential in its strategic moves into Television and Automobile sectors.

Icahn’s ambitious predictions don’t stop at the television and automobile industry, as he envisions Apple’s substantial growth in the electric car scene. With the escalating cost of oil and its environmental impact, he believes Apple could spearhead innovation in this area. His speculation includes the potential acquisition of Tesla Motors, a leading manufacturer of electric vehicles, and the unveiling of an Apple-branded car by 2020.

Apple has already made footholds in the automotive industry with the introduction of CarPlay, which lets automakers integrate iOS tools like iTunes, mapping, and messaging services into their car manufacturing processes. This is seen by many as a sign of Apple’s interest and intention in the automobile industry.

However, the veracity of Icahn’s claim of Apple’s worth will lie in the appraisal of financial experts. Notably, predictions of Apple becoming the world’s first trillion-dollar company have been proliferating in finance circles.

This article was updated in 2025 to reflect modern realities.