Apple Inc. has crossed a $2 trillion market value making it the first US company to do so. Shares of the company surged post quarterly results in July that led to the taking over of Saudi’s Aramco as the world’s most valuable listed company. Apple hit the $1 trillion market value just two years ago, meaning the company doubled its value in just 24 months.
Shares of the company went up by over 57 percent in 2020, despite in its most recent earnings report the yearly growth was modest at 11 percent year-over-year. The rise in shares depicts growing investors’ confidence in Apple. Also, Apple’s move to shift its dependence on the sale of iPhones and other gadgets to more on services for its customers.
Apple is not the first company to achieve this value. Saudi Aramco, the gas and oil company based in Saudi Arabia, touched the $2 trillion value back in December 2019. Later the stock price dropped, leading to a decrease in the value.
Founded by Steve Jobs and Steve Wozniak back in 1979, Apple has revolutionised the technology world with its innovative products. Products such as the Macintosh computer, the Apple store, the iPod, and the famous iPhone.
Depending on past innovations, the company is selling gadgets as new versions. A series of products include the Apple Watch Series 5, the AirPods Pro and the iPhone series. Apple also entered into service business such as TV programs, streaming music, movies, and providing news with a subscription model.
During March when the world came under a lockdown, Apple’s value fell below $1 trillion post stock market crash due to the COVID-19 panic. The US Federal Reserve has announced new measures to gain investors’ trust back. This led to gains in investments for big American tech giants Apple, Microsoft, Alphabet, and Facebook.
Three years back, the Big Five American giants — Alphabet, Microsoft, Apple, Amazon, and Facebook were worth around $3 trillion together. Now Apple and Microsoft together are valued at more than $3.6 trillion.
After new measures by the Federal Reserve post-pandemic outbreak, investors turned to tech companies trusting that they could save them from a pandemic recession. Apple’s value rose by $6.8 billion a day during the lockdown period. Besides, the Big Five companies together rose by $3 trillion since March.
Shares in the company have crossed $467.77 mark which gave the company a $2 trillion valuation. In the last few years, Apple share prices didn’t perform good but the pandemic changed everything. In 2020, on an average of 3.5 percent a week, Apple gained more than 50 percent of its share value amid the pandemic.
Apple released its earnings report in July. The company reported record sales and a profit of $59.7 billion revenue, that is an 11 percent increase compared to last year. Post the earnings report, the stock price has jumped significantly.
Apple has managed to create an ecosystem of its product and managed to lock its customers in it so they will buy new gadgets every few years and pay subscription fees monthly to use its digital services.
Meanwhile, the company started extracting money from companies that run their business on iPhone apps on the Apple store. Some media reports suggest the company attracted accusations of being unfair to the business by charging 30 percent of app’s revenue.