Apple becomes a Trillion Dollar Company
Apple starts the trillionaire club

We all remember watching “The Social Network”, which dramatized journey to become the youngest billionaire in the world while developing Facebook. In the film, one scene depicts the pivotal moment when Zuckerberg realized the potential of his company, as entrepreneur Sean Parker tells him, “A million dollars isn’t cool. You know what’s cool? A billion dollars.” Although Facebook recently encountered the biggest single-day loss in Wall Street History, it still remains a billion dollar company, along with tech counterparts like Amazon and Google. Meanwhile, on 2nd August, 2018, Apple managed to surpass them all and created a league of its own by becoming the first publicly traded U.S. company to be evaluated at $1 trillion.

Wall Street investors had predicted Apple to reach the milestone a lot earlier, on a share price of $203.45. However, Apple’s decision to buy back $100 billion worth of shares from the public slowed the process down temporarily. On 31st July, 2018, Apple announced its third quarter (Q3) earnings, which reported a revenue of $53.3 billion. Fueled by the enormous sale of iPhone X, particularly in Asia and North America, the services department (which includes Apple Music, iCloud, and Apple Care) also brought in 18% of that revenue, an increase of 31% from the same quarter last year. The generated revenue surpassed Apple’s own projection by $1 billion, bringing a large smile on the face of investors worldwide.

Around noon, on 2nd August, 2018, Apple’s share price reached $207.05, thus enabling it to become the first publicly traded U.S. company to be worth a trillion dollar. As the market witnessed the historic feat achieved by the tech giants, the shares closed at $207.39, gaining 2.92% in the day. In comparison, other tech companies are not lacking behind in their quest to join Apple in the elite trillionaire club. While Amazon surpassed the $900 billion mark in July, Google and Microsoft are each worth $800 billion as well.

The news of Apple’s success prompted GBH Insights analyst Dan Ives to say, “I think it just speaks to just how powerful the Apple ecosystem has become over the last few decades.” He also stated that, “This is not the end, that they hit $1 trillion. I view this as just kind of speaking to a new stage of growth and profitability.” Indeed, Apple’s projection indicates a 17% growth in Q4 this year from the same period last year, accounting for $61 billion. The forecast is based on the proposition of multiple new hardware are poised to arrive in the market, including three new iPhone models, a new version of the iPad Pro, a redesigned Apple Watch, and the 2018 MacBook Pro with a third-generation keyboard.

Apple, however, must bask in the glory of hitting a milestone. In 2007, Asian oil giants PetroChina briefly topped a trillion dollar valuation, only to plunge afterward. By the end of the year, it was worth less than $250 million.

However, the desire to acquire new technology is a stable instinct in people and hopefully will keep Apple’s share up. Apple has gained 22% in 2018 and 30% in the last 12 months, providing evidence of a stable growth in the future. Apple’s achievement is also a testament to the dominance asserted by tech companies in the share market. At the end of the day, maybe, a billion dollars isn’t cool enough – a trillion dollar is.