Apple, the tech giant, has become the first company from the United States of America to exceed a market value of $1 trillion.
The shares of the iPhone-maker struck an all-time high amounting to $207.05 during trading in New York, raising its market capitalisation past the landmark trillion-dollar level to approximately $1.02 trillion.
Apple is considered to be the winner of the race to a valuation of $1 trillion ahead of the so-called FAANG rivals of the company. The FAANG is composed of Facebook, Amazon, Apple, Netflix, and Google. The firm currently accounts for 4 percent of the S&P 500 index.
Currently, Amazon is valued at $866bn. It is closely followed by the parent company of Google, Alphabet, at $843bn.
The share rise of Apple was reinforced by the positive quarterly results for the Cupertino firm in which it exceeded the expectations of analysts.
Apple sold 43.1m units of iPhones in the quarter ending on 30 June, as its customers flocked to the company’s more expensive models such as the iPhone X which was considered to be a weekly best-seller for the firm.
According to information from FactSet, the average selling price of the iPhone reached $724, exceeding the expectations of analysts that amounted to $694. The revenue of Apple for the quarter increased by 20 percent year-on-year to $53.3bn, thus leading the company as a whole to improve by 17 per cent during the same period.
Earlier last Thursday, the website of Nasdaq revealed that the value of Apple is passing $1 trillion. The own “Stocks” app of Apple is based on Yahoo Finance data. It also reports the value of the company at $1.01 trillion. However, at the time, analysts pointed out that the celebrations were considered to be premature.
A filing with the SEC last Wednesday, disclosed that Apple had changed its share count at 4,829,926,000 on the 20th of July, which is less than the initial 4,842,917,000 that the company reported last Tuesday for the end of the quarter ending on 30 June because of share buybacks.
This implied that the shares of Apple must be able to reach $207.04 per share before being able to break past the $1 trillion valuations
Steve Jobs, a university drop-out, co-founded Apple, Inc. in 1976. Its market value is currently greater as compared to the combined capitalisations of major companies in the United States of America such as Procter & Gamble, AT&T, and Exxon Mobil.
The tech titan has endured its own tribulations and trials over the years. It once neared bankruptcy in the mid-1990s following a series of major product flops.
Since the company went public in 1980, the stocks of Apple has surged by pver 50,000 percent, dwarfing the roughly 2,000 percent increase of S&P 500 during that time.
Last year, Apple became the most profitable publicly-listed company in the United States when the net income of the company rocketed to $48.4bn. In 2006, a year before the iPhone, the net profit of Apple was only below $2bn.
Despite its revenue having been doubled under his tenure, Tim Cook, the chief executive of Apple, must yet try to replicate the astounding success of the iPhone of Steve Jobs with a new product. With companies such as Amazon and Google not far behind the lead pf Apple, Cook will be feeling the pressure to maintain the lead of his company.