Silicon Valley Master of the Universe Apple has become the world’s first company valued at $1 trillion.
Apple has successfully reached a market capitalization of $1 trillion following this week’s earnings release. The computing and phone giant’s shares traded at $207.05, valuing the company just over $1 trillion based on a share count performed on July 20. 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.
iPhone sales grew by 1 percent, but Apple’s revenue increased by 20 percent, with Apple reporting an annual revenue of $53.3 billion. This showed a growth of 17 percent year-over-year for the company despite a decrease in Mac sales and a generally flat sale rate of iPads. The company’s various services such as Apple Music, iCloud and Apple Pay now represent $9.6 billion in revenue.
The company’s iPhone sales are where they have managed to thrive in recent years, but tech companies, in general, have seen great success in the past decade. Although Apple is the first to do so, Google’s parent company Alphabet, Microsoft, and Amazon all have genuine chances at reaching a $1 trillion market capitalization.
GBH Insights analyst Dan Ives discussed the milestone with CNBC saying: “I think it just speaks to just how powerful the Apple ecosystem has become over the last few decades. This is not the end, that they hit $1 trillion. I view this as just kind of speaking to a new a stage of growth and profitability.” Ives continued to say: “It just speaks to the vision that [co-founder Steve Jobs] and now [CEO Tim Cook] have had in making sure Apple isn’t just a hardware company.”