Home » Sunday » Technology
Apple’s market value hits US$2tn
Print Edition
Apple on Wednesday became the first US company to reach US$2 trillion in market value in the latest demonstration of how tech giants have benefited from the upheaval of the coronavirus.
The iPhone maker attained the distinction in morning trading before easing and concluding the session slightly higher. The company had previously become the first giant to hit US$1 trillion in market value in March 2018.
Apple is followed by other technology companies, including Amazon, Microsoft and Google parent Alphabet, all of which now have more than US$1 trillion in market value.
Shares in Apple have roughly doubled from March lows, an astonishing performance which has lifted Chief Executive Tim Cook’s net worth to US$1 billion for the first time, according to a Bloomberg Billionaires Index calculation.
Even as other large tech firms have shot higher on robust demand during lockdowns, Apple has outpaced its rivals by delivering strong sales of gadgetry, including wearables and tablets, along with new apps and services which have gained ground during the global health crisis.
“Apple has been wildly successful in building out its platforms, mitigating the fact that iPhone sales had peaked, by building products that surround it and services that enhance it,” said Avi Greengart, analyst with the consultancy Techsponential. “It all feeds back into the cycle for Apple.”
In the past quarter ending in June, Apple reported profits climbed 8 percent to US$11.2 billion and revenues jumped 11 percent to US$59.7 billion.
A major factor in Apple’s success has been leadership from Cook, who took over just ahead of Steve Jobs’ death in 2011.
“He didn’t invent anything, but what he has done is keep a firm hand on the tiller, steering the ship and keeping the culture intact,” said analyst Laura Martin at Needham & Company. “He deserves a lot of credit for making the most out of Steve Jobs’s inventions.”
Apple’s rise comes amid a broader rally in tech shares as employees around the US shift to working at home amid the coronavirus pandemic and social distancing protocols.
The tech-rich Nasdaq has hit records more than 30 times in 2020, including on Tuesday.
In the most recent quarter, Apple enjoyed a modest rise in smartphone revenue and robust increases in sales of iPads and Mac computers amid elevated demand for remote education and work-from-home buyers.
The company also benefited from services such as digital payments and streaming and from increased sales in smartwatches as interest in health and fitness applications rises.
The ascendancy of Apple and other tech giants has prompted increased oversight from regulators and lawmakers, including on Capitol Hill, where Cook and the CEOs from Amazon, Facebook and Google all were grilled at a high-profile July 29 hearing.
“Simply put, they have too much power,” said Representative David Cicilline, a Democrat from Rhode Island who chairs the panel that convened the hearing.
Analysts expect more scrutiny ahead for Apple and other giants, but it isn’t clear yet whether the questioning will lead to meaningful change.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
