Apple has made history again, with its market capitalization reaching $3 trillion on Friday. With shares escalating about 1% and passing the pivotal $190.73 price, Apple managed to reach this impressive milestone.
Investor Confidence Remains High
Despite the company’s forecast in May, suggesting an expected fall in the current quarter’s revenue by approximately 3%, investors still show strong belief in Apple’s stock. The company’s vast array of products and services continues to attract positive attention, even during a turbulent year in tech where the mantra seems to be to “do more with less” according to TechCrunch.
The Impact of iPhone 14 and 15
Investors may have been swayed by the anticipation surrounding the iPhone 14 and the upcoming “mini super cycle” iPhone 15. These models are projected to appeal to the estimated 25% of Apple’s golden customer base that hasn’t upgraded their iPhones in over 4 years according to Reuters.
Surpassing the Trillion Dollar Threshold
This is not the first time Apple hit the $3 trillion mark in intraday trading, as it occurred once in January 2022. However, the company couldn’t maintain that level by the market’s close. With the unveiling of its new product, Vision Pro – a high-priced headset offering a virtual reality experience – the company was able to once again surpass this threshold as reported by Bloomberg.
Magnitude of the $3 Trillion Milestone
While largely symbolic, the $3 trillion market value is an awe-inspiring feat. To put it in perspective, this amount could purchase nearly 9 million homes in the U.S., or even acquire the 50 most valuable sports teams globally with plenty left over as calculated by Zillow and Forbes respectively.
Other corporate giants trail behind Apple in market value. Microsoft stands as the second most valuable public company at $2.5 trillion, while oil giant Saudi Aramco, Google parent Alphabet, Amazon, and chipmaker Nvidia all boast market values above $1 trillion.
An Empire Built on Technology
It took Apple less than two years to attain a market value of $3 trillion after hitting the $2 trillion mark for the first time in August 2021. This exponential growth can be attributed to the technology empire Apple has built since Steve Jobs returned to the company in 1997.
The company’s key revenue sources include its flagship iPhone, which accounted for over half of the company’s nearly $400 billion in sales last year, and other products and services like the Macintosh computer, iPad, Apple Watch, AirPods and various streaming services.
Though most of Apple’s groundbreaking innovations took place under Jobs’ leadership, the majority of its wealth has been generated during Tim Cook’s tenure as CEO, which began shortly before Jobs’ passing in October 2011. When Cook took over, Apple’s market value was a significantly lower $350 billion.
