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Apple Reaches $2 Trillion

Started in a garage in 1976 by Steve Jobs, Ronald
Wayne and Steve Wozniak, the predecessor of today’s
Apple was focused on bringing computing to the
average consumer in a size that was reasonable.

The new company was incorporated as Apple
Computer, Inc. in 1977. The company went public
in 1980 and realized immediate success. The original
Macintosh computer started shipping in 1984.

The company has had a string of successful hardware
products, including the iPod; introduced in 2001,
the iPhone; introduced in 2007, the iMac computer;
introduced in 1998 and the Apple Watch; introduced
in 2014; just to name a few.

Brand loyalty is a major reason why Apple has enjoyed
so much success. Buyers of their iPhones are very
unlikely to switch to the Android platform instead of
upgrading to the newest iPhone. The loyalty by Apple
buyers extends to laptops, smart speakers, tablets,
desktops, smart watches, displays, ear buds, software
and streaming devices or media players.

Few companies have enjoyed the dedication to the brand
as Apple. It is ranked as the world’s most valuable brand.

The company offers several online and cloud services
in addition to the consumer products. The company
rates number three in mobile phone production behind
Samsung and Huawei.

Apple History and Capitalization

Wozniak left the company in 1985 under an amicable
departure and Steve Jobs resigned the same year and
started his own company.

By the 1990s, the company had run into some problems
and was faced with market competition from Microsoft.
The PC market was still led by IBM at the time.

In June of 1997, an unidentified party sold 1.5 million
shares of Apple stock in a single transaction which
caused the stock to nosedive to a 12-year low. Steve
Jobs then convinced Apple’s board to appoint him
interim-CEO, which they did and they also fired the
existing CEO. Later, it was determined that Jobs was
actually the one who made the large stock transaction.
He was later appointed CEO.

In August of 2018, Apple became the first publicly-traded
U.S. company to reach a $1 trillion dollar valuation. That
year, Apple’s worldwide revenues were $265 billion.

Apple has 510 retail stores in 25 countries. In January of
2019, the company reported its first decline in revenues
and profits in a decade.

Just two years after reaching the $1 trillion mark, in
August of 2020, the company reached a $2 trillion
valuation. On August 19, 2020, Apple’s stock price
topped $467.77 intra-day, making Apple the first
company with a market capitalization of $2 trillion.
(although Saudi Aramco briefly held the honor after its
IPO) Market capitalization is the total value of the stock
price multiplied by the number of outstanding shares.

Apple’s stock has seen a steep ascension in its stock
price since March, in stark contrast to the U.S. and
international economies.

The company’s Mac product has utilized Intel processors
for some time, but Apple announced that they were going
to transition to an in-house line of processors, with the
hopes of more processing power.

Since surpassing the $2 trillion dollar mark, the company
has continued its upward trajectory. Analysts now consider
the stock over-valued, although they are also looking for
more growth next year.

The stock may become more affordable for many investors
as the company plans a 4-for-1 stock split on August 31,
2020 and the launch of the first 5G iPhone in October
should excite investors as well.