Apple’s value hits record $ 2 trillion

Apple’s market capitalization hit $ 2 trillion on Wednesday, making Apple the first company outside of Saudi Arabia to reach that milestone. Saudi state-owned oil company Saudi Aramco was briefly valued at $ 2 trillion last December, but Apple exceeded its value last month.

The new milestone comes just two years after Apple first hit a market cap of $ 1 trillion. This is particularly notable because Apple’s market cap was below $ 1 trillion as recently as March, when fears of a coronavirus-induced recession weighed on stocks at all levels.

But while the coronavirus has created economic hardship for many businesses and workers, it has been a godsend for Apple and other big tech companies. Unable to spend money on experiences like dining out or going on vacation, consumers who still have jobs have pretty much freaked out digital gadgets.

The result: Apple posted solid revenues and profits for its most recent quarter ending in June. The company posted revenue of nearly $ 60 billion, up 11% from the same quarter a year earlier. Profits were $ 11.2 billion, up from $ 10 billion a year earlier.

For the January-March quarter, a period in which many companies were forced to downsize, Apple reported revenue of $ 58 billion, up slightly from the previous year.

The record valuation is justification for Apple CEO Tim Cook. Cook took over as CEO from a sick Steve Jobs nine years ago. Apple under Cook introduced fewer revolutionary products than during Steve Jobs’ 14-year tenure. The Apple Watch and AirPods are probably Apple’s most notable product introductions since 2011.

But Cook has used his supply chain expertise to gradually expand the Apple product line while maintaining the high quality of Apple devices. He also found new ways to monetize Apple’s hardware with services like Apple Music. As a result, the iPhone and other Apple products have continued to generate massive profits for Apple shareholders.

Apple’s size – and particularly its complete control over the iPhone app ecosystem – has made them enemies. Last month, members of Congress spoke to Cook, alongside three other Big Tech executives, about how Apple runs its App Store. The hearing was part of a year-long investigation into competition in the tech industry.

More recently, Epic Games continued Apple’s policy of requiring a 30% discount on all in-app purchases. Epic maintains that the policy violates antitrust law.