Published: Sat, August 04, 2018
Money | By Wilma Wheeler

Business Apple becomes first trillion-dollar company

Business Apple becomes first trillion-dollar company

Amazon is still a distant second if you take into consideration the next two companies in the upper echelon of the United States market cap ladder: Google parent Alphabet and Microsoft are both breathing down Amazon's neck, with valuations of $852.73 billion and $822.78 billion, respectively.

Apple is on the verge of becoming the first public company to reach a trillion dollar valuation, following a closely-contested race with Amazon.

iPhone sales grew by 1 percent, but Apple's revenue increased by 20 percent, with Apple reporting an annual revenue of $53.3 billion. "But my $250 price prediction took into account that the company is moving quickly to improve sales of services like Apple Music and away from its dependence on devices".

In 2018, however, their market share is slightly down.

Apple announced strong earnings for the third quarter of the year.

But the phenomenal success of the iPhone led competitors to mirror certain features like touch-screens featuring rows of colorful icons - and prompted Apple to pursue those competitors in court.

The tech company, launched from a garage in 1976, has been on a steady climb through the years, revolutionizing personal computers and phones with its Macs and iPhones.

While that kind of innovation has yet to reach store shelves, Apple has consistently defied dour predictions. "Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline".

But Cook has gradually won accolades from investors by pumping out a series of solid financial results and spreading Apple's products to China and other foreign markets.

Benedict Evans of Silicon Valley venture capital firm Andreessen Horowitz saw strength in Apple's tendency to do the unexpected in a way of thinking it likely inherited from Jobs. And Fortune said, "By the time you read this story, the quirky cult company...will end its wild ride as an independent enterprise".

The company has battled with the USA government over making iPhones so secure that even police can't peek at data, and prides itself on not making money off people's personal information the way ad-targeting companies such as Facebook do.

Its stock - now testing the $1,800 mark - is up 50 per cent this year, but, as Macquarie analyst Ben Schachter's most recent new price target indicates, the company needs a $2,100 stock price to hit $1.02 trillion - that's a 76.6 per cent year-to-date increase requirement.

"This is a company that should be valued as a services business instead of a discreet product business, which is, as long as I can remember, how this company has been valued", he said in an interview Friday.

The market has been buzzing about Apple's $1 trillion market valuation.

In Apple's case, the outlook certainly looks bright.

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