Today marked another milestone for Apple – the megacorporation became the first public company to reach $1 trillion market value. A feat that most iconic corporations can only ever dream of.
At the start of the century, the corporate giant launched its first iPod. Apple was valued then at $6 billion. 2007 not only saw the release of the first iPhone, but also the rise of its market cap to $106 billion. By 2010, their first tablet, the iPad was produced. Consequently, this increased the market value to $174 billion. With Tim Cook replacing Steve Jobs the year after, the company’s net worth peaked at $624 billion. And now, the 13-digit milestone.
Historically speaking, Apple wasn’t exactly the first company to reach the trillion-dollar mark. In 2007, PetroChina was valued at $1.1 trillion after floating in Shanghai. However, majority of the company’s shares were owned by the Chinese government. Currently, PetroChina is worth $220 billion.
Economists think that with the decrease in phone production, the company’s decision to produce more expensive phones was key to its revenue growth. In addition, branching out to different sources of income proved to be successful as well, selling apps, cloud storage, and streaming.
Can Apple keep its 13-digit market value?
With the company’s quarterly profit exceeding expectations, the $1 trillion goal was achieved. But with the ongoing trade war with China, will it be able to retain their record-breaking status quo? Apple generates around 18% of its revenue from the world’s largest country.
In addition, recent reports show how regulators as well as politicians have been hot on the heels of these corporate giants. In the aftermath of the Cambridge Analytica scandal, Facebook‘s shares dropped by 19%, losing $120 billion in one day. European antitrust regulators slapped a $5 billion fine at Google for forcing mobile producers to have users download their apps on their phones. Even Jeff Bezos’ Amazon has had their woes. Accusations by US President Donald Trump against Bezos’ recent acquisition, the Washington Post could prove to be problematic for the retail company.
Steve Job’s brainchild has changed the world through innovation and the passion to create great things. And as the world evolves, so does his company. Will it be able to stay at the top of its game? Only time will tell.
