Published: Sat, August 04, 2018
Markets | By Otis Pena

Apple is about to become the world's first trillion dollar company

Apple is about to become the world's first trillion dollar company

Apple Inc. became the first US company ever to hit $1 trillion in market value on Thursday.

So, what are the factors that have helped Apple sail through against all odds and contributed to the company in achieving the rare feat? Obviously, the stock market is extremely volatile, so shares might not remain at $207.05 for very long, but for now at least, Apple is technically worth $1 trillion.

But Cook has capitalized on the continuing popularity of the iPhone and other products invented under Jobs' reign to sell services tailored for the more than 1.3 billion devices now powered by the company's software. The S&P 500 has merely doubled in value over that time.

After Apple (AAPL) became the first American company to hit $1 trillion in market value, Cook sent a letter to his 123,000 employees.

The first company to hit $1 billion in market capitalization - this was far before the breakup of AT&T into the "Baby Bells", which occurred in 1982. Apple also forecast a strong fourth quarter, posting a revenue guidance of between $60 and $62 billion.

The Cupertino, California company's shares added another 0.3 percent on Friday, putting its market capitalization at $1.005 trillion.

Apple's future looks incredibly bright indeed.

Apple's stock has risen over 30 percent in the past year, fueled by optimism about the iPhone X, launched a decade after the original. Consequently, Apple became the first USA company with a market cap of over $1 trillion.

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The $1 trillion milestone is largely symbolic, though impressive.

"It's like the horse that crosses the finish line and says I'm totally wiped out", said Morgan, whose firm holds more than 200,000 shares in Apple.

His successor and incumbent Apple CEO Tim Cook, meanwhile, is downplaying the valuation.

Cook emphasized the company's innovation and principles make Apple one of the world's most valuable businesses.

Amazon is in second place at $866bn, followed by Alphabet, the parent company of Google, at $843bn.

Wall Street thinks Apple could go even higher.

On Tuesday, the company said Apple Services, which includes things like the App Store and Apple Music, saw a 31% jump in revenue. All that money coming back to the USA also spurred Apple to raise its dividend by 16 percent and commit to buy back $100 billion of its own stock as part of an effort to drive its stock price even higher.

Apple has fought myriad patent battles with rivals, particularly South Korean consumer electronics colossus Samsung, arguing that its product design is as much its intellectual property as the hardware and software.

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