Apple CEO calls $1 trillion value a 'milestone' but not a focus

Apple becomes first $1 trillion publicly listed US firm

Apple on Thursday became the first private-sector company in history to be worth $1 trillion, after its share price reached an all-time high above $207. While Apple is the only public company in the world right now to be valued at $1 trillion, it is not the first to reach there.

Part of Apple's success is due to its increased profit margins thanks to the higher average selling price of its newest smartphone, the iPhone X.

In the firm's posted financial results for the fiscal 2018 third quarter, Apple revealed a 17% increased quarterly revenue from previous year of $53.3 billion and 40% higher quarterly earnings per diluted share of $2.34.

That's a far cry from Apple becoming some kind of poky utility, however. I think the best way to look at this market is that there will soon be only two major players, Amazon and Microsoft, and then a bunch of smaller players.

Alphabet, the parent of Google, scrambled to provide its Android software to power mobile phones, making sure Apple didn't steal a huge march on rivals.

But thanks to Tim Cook and Co's strong, Wall Street-beating results, the gap that Amazon has managed to shrink has widened - and, eventually, Amazon was beaten.

At press time Apple's stock cost $206.90 and its market capitalization was $1.017 trillion.

The company, which was started in a garage in Palo Alto by Steve Jobs and Steve Wozniak in 1976, has transformed the way people communicate with its ubiquitous iPhone. It now accounts for 4 percent of the S&P 500.

But there's no law against a company being worth more than $1 trillion. Microsoft, from which Apple snatched the title of most valuable company in 2012, is at $827.53 billion today. By a year ago, its sales had grown more than 11-fold to $229 billion - the fourth highest in the S&P 500 .SPX - and net income had mushroomed at twice that rate to $48.4 billion, making it the most profitable publicly listed USA company.

But Cook has gradually won accolades from investors by pumping out a series of solid financial results and spreading Apple's products to China and other foreign markets.

Related:

Comments


Other news