Apple has become the world’s first trillion-dollar publicly private company to reach $1 trillion in the market valuation. The company was co-founded by Steve Jobs in the year 1976 to sell the personal computers from iMac to iPhone company. Its shares have hit $207.05. Apple’s share price has grown 2,000 % since Tim Cook has replaced Jobs as Chief executive in the year 2011.
The company has managed to hit a $1tn market capitalization 42 years after the Apple was founded and after 117 years after the US steel has become the first company which is to be valued at $1bn in the year 1901. This means the stock market value of Apple is greater than third the size of the UK economy and is larger than the economies of Switzerland and Turkey.
The energy company PertoChina was cited to be the world’s first trillion dollar company after its flotation in the year 2007, the valuation is considered to be unreliable because only 2% of the company was released for public training. Saudi Aramco, a national oil company of Saudi Arabia could be worth up to $2tn upon its planned stock market float but the value is yet to be tested.
This week’s rise in Apple’s share price was powered by the quarterly financial results released those were better than the Wall Street had expected. The tech giant racked up profits of $11.5bn in three months on the back of record sales that hit $53.3bn, pushing shares of the iPhone giant higher and easing the value of the company up from $935bn towards $1tn (£770bn).
“Growth was strong all around the world,” Apple’s finance chief, Luca Maestri, said. The company is sitting on a $285bn mountain of cash reserves and made a net profit of $48.5bn in 2017, its last set of full-year results. Apple’s astounding recent performance has left rivals in the competitive technology sector trailing in its wake.
Its strong financial figures were in marked contrast to those of Facebook, which suffered the worst day for a single company in US stock market history last week, losing more than $120bn from its value as its shares fell more than 20%. Amazon, which was regarded as the next most likely to breach the $1tn mark, was also left behind despite posting higher-than-expected profits last week.
A fall in the retailer’s share price since then means it is now worth $883bn, while fellow tech giant Alphabet – Google’s parent company – is valued at $845bn. Apple was co-founded in 1976 by Jobs, Ronald Wayne and Steve Wozniak, who is credited with designing and building the company’s first desktop computer, the Apple I, which sold for $666.66. Apple beats Amazon to become first $1 trillion company.
Amazon threatened to beat the iPhone-maker to the coveted trillion-dollar valuation, but its shares have been trending down the last week. The online retailer’s valuation currently sits at $873.52 billion. Apple’s own Stocks app, powered by Yahoo Finance, actually jumped the gun somewhat, reporting the news early. That’s because it failed to take into account an updated share count that meant AAPL needed to pass $207.05 to officially qualify for the $1 trillion mark.
Apple’s stock price has been aided by its better-than-expected Q3 2018 earnings report. Revenue for the quarter beat Wall Street’s expectations, coming in at $53.3 billion. iPhone sales remained strong during the quarter at 41.3 million units. Most importantly to investors, the ASP (average selling price) of iPhones continued to remain high. Most analysts expected the ASP to come in around $699, but it hit $724, thanks to the super-popular (and high-priced) iPhone X.
With its 2018 iPhone lineup slated for release this fall, Apple is expecting to have a huge Q4, too. Cupertino set revenue guidance for the fourth quarter between $60 billion and $62 billion, which would be an all-time high if the company hits its mark.