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Apple became the first American company to achieve a market capitalization of $ 2 trillion. It’s an arbitrary but important step all the same, a testament to the anti-pandemic performance of the iPhone maker. It’s also only been two years since Apple hit a market cap of $ 1 trillion, meaning the company’s value has essentially doubled in just over 24 months.
Apple isn’t the first company in the world to hit the $ 2 trillion mark. Saudi Aramco, the oil and gas giant headquartered in Saudi Arabia, did it first. Aramco briefly hit the $ 2 trillion mark in December 2019, but has since fallen below that number as its share price hovers. Apple surpassed it as the world’s most valuable company on August 4, 2020.
Today, the company’s shares broke the $ 467.77 mark which gives Apple the $ 2 trillion valuation, as reported by the Financial Times. But they could well go below in the future.
Apple stocks have been in tears for years, but they have performed particularly well in 2020, gaining more than 50%, despite the disarray caused by COVID-19. The company’s shares have gained an average of 3.5% each week since early June, reports The Wall Street Journal. And its share price rose significantly after its last earnings report in July, where the company posted record sales and a total of $ 59.7 billion in revenue – up 11% from the same quarter. from last year.
But while revenues are booming, Apple is facing a series of regulatory headwinds regarding the ecosystem of applications that underpin its hardware. The most notable of these is the legal challenge Fortnite creator Epic Games, which is currently suing Apple for having Fortnite off iOS after Epic tried to bypass Apple’s payment systems. Part of Epic’s complaint (and one echoed by many other companies reaching customers through Apple’s App Store) is that the company’s 30% cut on transactions is sky-high.
Along with Apple’s growing revenue from its services and plans to launch various subscription packages later this year, it shows how the future of the iPhone maker depends not only on its hardware, but also on the software. that builds customer loyalty. The iPhone took Apple to $ 1 trillion. Services, arguably, got $ 2 trillion for it. What can keep him there?
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