Apple becomes 1st private company worth $1 trillion

Marcus Newton
August 3, 2018

Apple just became the first U.S. company with a market capitalization over $1 trillion. The tech giant crossed the $1 trillion threshold when it hit $207.04 per share earlier this morning, though it has since trended down.

The iPhone transformed Apple's fortunes.

The achievement was due to a solid financial quarter in which the company posted a record $53 billion revenue, and of course a long history of beating expectations despite constant predictions that the company has peaked. And there are almost two million developers in the country making apps for Apple's iOS.

Shares of the company rose 3% Thursday, and are up about 31% over the past year.

Apple is the first publicly-owned company to reach a $1 trillion market capitalization. User growth and engagement on Facebook and Twitter has been wavering amid deepening concerns about their ability to protect people's personal information and shield them from misinformation and other abuses that have been infecting their services.

Apple's fortunes, by contrast, seem brighter.

Apple Inc. investors have wondered for years what comes after the iPhone.

One of three founders, Jobs was driven out of Apple in the mid-1980s, only to return a decade later and rescue the computer company from near bankruptcy.

January 2016: Apple announces that more than a billion of its devices are in use around the world.

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For context, passing the $1 trillion mark means Apple now has a value greater than the gross domestic product of all but 26 major countries; its value is higher than the GDP of Argentina, the Netherlands, Sweden, and Switzerland, among others, according to the CIA's World Factbook.

Jobs' vision, showmanship and sense of style propelled Apple's comeback.

But the recovery might not have happened if Jobs hadn't evolved into a more mature leader after his exit from the company in 1985. Still, it's a staggering sum - a trillion is equal to a million squared - and a first for a US-based company.

Watch Apple trade in real time here.

Jobs, who founded Apple in a Silicon Valley garage in 1976 with Steve Wozniak and built it into a global powerhouse, died in October 2011.

Cook hasn't escaped criticism, however.

Although the iPhone X launched with weaker-than-expected sales numbers, Apple has turned things around as of late. At the same time, sales of iPad tablets and Mac PCs dropped 5% year-over-year.

"Apple is approaching the upper limits of what it can comfortably charge consumers for the iPhone", Neil Mawston, an analyst at Strategy Analytics, said.

In 2006 the company had sales of less than $20bn and posted profits of nearly $2bn.

Other reports by MaliBehiribAe

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