That’s trillion with a T-Apple hits market value of $1 trillion
- Author: Zachary Reyes Aug 03, 2018,
Aug 03, 2018, 6:42
Apple's market capitalization - a common financial measure of worth which multiplies the number of shares by the share price - makes the company worth more than the economies of, for example, Saudi Arabia, Switzerland and Taiwan.
Adjusted for inflation, numerous U.S. companies from General Electric to Microsoft have been worth more than Apple is today.
Apple's cult following is largely credited to Kawasaki, who coined the phrase evangelism marketing, a strategy that helps companies get customers to believe so strongly in a product that they try to convince others to buy it.
Higher average selling prices equal higher profit margins, by the way.
On Tuesday, Apple reported that net profit jumped more than 30 percent to $11.5 billion. Apple stock is up more than 20% this year.
Speaking to CNBC, Dan Ives, an analyst with GHB Insights, pointed toward the milestone as a marker for even better things to come.
By previous year, its sales had grown more than 11-fold to $229 billion - the fourth highest in the S&P 500 - and net income had mushroomed at twice that rate to $48.4 billion, making it the most profitable publicly-listed USA company. Revenue increased 17 percent to $53.3 billion.
Now the company stands 113th.
The company's stock was at $206.85, up 2.7 percent near 1620 GMT. While that's still low by tech superstar standards, it's a significant shift for Apple.
Apple CEO Steve Jobs speaks during an Apple special event in Cupertino, Calif., April 8, 2010.
As mighty as Apple may seem now, economic and cultural forces can quickly shift the corporate pecking order. Now, it ranks as the ninth most valuable, surpassed by Apple and a list consisting primarily on companies immersed in technology.
The company is notoriously, mostly understandably secretive about what it's cooking up in its gadget labs. Oh, and Zim has something in common with Apple as both were formed in 1980.
Now the company may be splurging on areas such as health care, transportation, new forms of computing and more.
Originally founded as a maker of computers in 1976, Apple expanded to dozens of product categories in the 1990s, many of which were unsuccessful.
As the stock market has climbed up and up this year, technology companies have propelled the gains.
Watch Apple trade in real time here.
Amazon, whose worth was just a third of Apple's in 2011, has seen its share prices surge in recent times.