Apple becomes world's first company to hit $3 trillion valuation
What's the story
Apple on Monday became the first company to hit a stock market value of $3 trillion. However, by the end of the day's trading session, the value slipped to $2.99 trillion as its share closed at $182.01.
Since the iPhone's debut in 2007, the brand's share price has risen by roughly 5,800%. Apple also witnessed increased spending on gadgets during the COVID-19 lockdowns.
Context
Why does it matter?
The $3 trillion market value for Apple indicates that its investors are confident that its products and services will continue to hold sway among buyers.
The tech giant's stock increased over 30% in 2021 as demand for iPhones, Macs and iPads rose during the pandemic.
The brand is also exploring new ventures such as virtual reality and automated cars that further excite the investors.
Timeline
It took 16 months to reach $3 trillion valuation
In 1980, Apple had debuted in the stock market with a market value of $1.8 billion. Fast forward to August 2018, it became the first company to reach a valuation of $1 trillion.
The brand took just over 16 months to see its valuation rise from $2 trillion to $3 trillion wherein $500 billion was added to its market value since November 15, 2021.
Information
Microsoft trails Apple with a market capitalization of $2.5 trillion
In October 2021, Apple briefly lost its title of the world's most valuable company to Microsoft, which currently has a market capitalization of $2.5 trillion. Saudi Aramco is valued at $1.9 trillion, while Amazon, Alphabet, and Tesla are worth more than $1 trillion.
Strategies
There is an uptick in software sales
Under chief executive Tim Cook, Apple has raised its revenue from services like video streaming, music, and storage space via iCloud.
It has aided in reducing the brand's reliance on the iPhone from over 60% in 2018 to roughly 52% of the total revenue in fiscal year 2021.
This has also alleviated the investors' worries about the company's over-reliance on the iPhone.
Future
What are Apple's future plans?
Apple's allure in the market has increased due to its fast embrace of technologies like artificial intelligence (AI), 5G, and virtual reality (VR).
The brand is also the market leader in the Chinese smartphone market, beating rivals like Xiaomi and Vivo.
Apple is expected to launch its own electric vehicle in the coming years to rival the likes of Tesla and Google.