Apple beats tech rivals to the $1 trillion mark

Fredrick Soto
August 3, 2018

Apple became the first publicly traded American company to reach a trillion-dollar market capitalization on August 2, when its share price surged following the announcement of record second-quarter financial results.

United States tech companies have cemented their position in the broader market, now making up the top 5 most valuable enterprises based on share prices. The gains came after the iPhone maker reported strong earnings late Tuesday that prompted a two-day rally in the share price. There's no fundamental difference between Apple being worth $999 billion and $1.01 trillion.

April 1976: Jobs, Wozniak and Ronald Wayne create Apple Computer to sell an eponymous computer hand-built by Wozniak. Also propelling Apple higher in recent months was Apple's announcement that it earmarked $100 billion for a new share repurchase program.

Mr Jobs, who died in 2011 and was succeeded as chief executive by Tim Cook, oversaw the development of the iPhone, which transformed Apple's fortunes. After Steve Jobs returned to Apple as the CEO in 1997, he axed most of the product lines to focus on PCs.

The California-based company born of a friendship between Steve Wozniak and the late Steve Jobs is credited with giving rise to smartphone lifestyles and "apps" for almost everything. "It's one of those things that does not mean anything by itself... it's more a testimony of the importance of Apple on the market". This valuation makes Apple more valuable than the GDP of all but 26 countries, according to data from the CIA Factbook.

Apple's software and services revenue, including the App Store, which recently turned 10 years old on July 10, along with Apple Music and cloud services, jumped 31 percent year-over-year.

Apple said it expects revenue of $60 billion to $62 billion for the fiscal fourth quarter that ends in September 30.

Though there's been chatter of a tech meltdown as Facebook and Twitter shares plummeted after poor earnings showings and a possible time of reckoning, other tech giants like Apple, Amazon, Alphabet, and Microsoft have all posted strong earnings in the last quarter.

The company founded by Steve Jobs, however, is not the first to achieve this feat.

While Apple should do well in the near future, it is also true that share prices can go down as well as up.

But he couldn't help but chuckle over the missed opportunity of being back at Apple today.

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