Apple has finally achieved the most successful milestone in their history. Apple has breached the $1 trillion valuation mark and is the first company to do so! And it all happened due to the fact that Apple’s shares rise around 6% this week. following that, the expected earnings grew much more over the quarter. Now, Apple’s stock is priced at $207.04/share. And one of the main reason for the boost is iPhone X. With the new phone, Apple was able to increase their sale price and also their profit margin on each of the smartphone.
Apple’s Trillion Dollar Valuation
In the last quarter, iPhone sales grew by 1 per cent but the revenue increase to 20 per cent. When compared with last year, the sale has grown by 17 per cent valued at $53.3 billion. Mac sales are a bit down and iPads are going at the same rate. In a meeting before, Apple talked about their services becoming the key part of their revenue. Today, all the services of Apple like Apple Music, iCloud, App Store contribute nearly $9.6 billion to the overall revenue.
Apple’s Race To Becoming The First Trillion Dollar Tech Company
For a long time, Apple has captured the top position in terms of market cap for years. But it might not hold true in the near future. With the expanding reach of Amazon, Alphabet and Microsoft, many thought that Apple might not be the first company to cross the trillion dollar mark. However, Apple defined the odds in their favour and became the first tech company to do so. Amazon has been growing at a much faster rate over the last two quarters but Apple’s rise in share made them reach the milestone before any other company. And the iPhone has been the main contributor to Apple’s trillion dollar evaluation.
Apple’s History And About The Milestone
When Apple started in the garage, they were not much successful. Apple nearly declared bankruptcy but it was Bill Gates who saved them. 21 years ago, Bill Gates helped Apple by investing nearly $150 million and the rest is the history. With the funding they received from Microsoft, Apple started their iPod and iPhones which revolutionized the tech industry. The funding was revealed to the world by Steve Jobs at an event held in Boston.
Also, Apple might be thankful to Trump which made them recover tens of billions of money from international funds. The new administration made the business more friendly which allowed Apple to bring their money without paying taxes for it. Due to this, Apple was able to raise their share price over $207 and reach the Trillion dollar mark.
But, as we say, Apple is the first tech company to reach the mark. Before this, PetroChina, a Chinese company breached the mark as early as in 2007 itself. They saw a rise when their stocks jumped that year. But, it saw a downfall in 2008 which made the company down to $260 billion. However, it is unlikely Apple will fall as such as they have a far better hold in the market.
All being said, its time for Apple to celebrate as they breached the $1 Trillion Mark!