Apple has become the first company to reach a market capitalization of $3 trillion, raising $1 trillion in less than 16 months as the coronavirus pandemic turbocharged big techs.
The tech giant surpassed the $182.86 mark on Monday, becoming the first publicly traded corporation in history to do so. During the day, the stock fluctuated between above and below the number.
The tech giant also was the first US company to hit $2 trillion in August 2020, during the COVID-19 pandemic that stoked demand for personal electronics and digital services, such as Apple’s streaming and smartphone app store.
And it likewise was the first American firm to overtake $1 trillion in August 2018.
The surge marks the latest accomplishment for Tim Cook, who became chief executive of the Cupertino, California giant in 2011 shortly before the death of the company’s visionary cofounder, Steve Jobs.
While the top tier of US stock markets are dominated by Silicon Valley companies, Microsoft is the only other American company worth more than $2 trillion and is also potentially on its way to the $3 trillion mark.
In October, Apple reported net income of $20.5 billion on revenue of $83.4 billion, a record high for the quarter ending in September.
However, as with many other tech giants, Apple has seen pressures in recent months due to supply chain problems, including a global shortage of semiconductors and COVID-related manufacturing disruptions in Southeast Asia.
Apple shares tumbled following that October earnings report, but rallied thereafter, winning nearly 20 percent in the final two months of 2021.
Only a few companies, such as Tesla and Amazon, are worth more than $1 trillion. Alphabet, the parent company of Google, and Saudi Aramco, an oil company, are both valued at around $2 trillion, while Microsoft is valued at around $2.5 trillion.
Apple’s stock rose more than 30% in 2021 as it successfully weathered the supply chain issue and profited from increased demand for iPhones, Macs, and iPads as customers renovated their home offices during the epidemic.
Apple’s rise to $3 trillion comes on the back of the incredible success of its iPhone line, which has spawned accessories like the Apple Watch and AirPods, not to mention services like AppleCare, App Store, Apple Music+, and Apple TV+.
At the time of writing this article, Apple share price has made a retreat to trade at $182.01.
Via AFP.
