Apple Becomes World's First Company To Hit $3 trillion Market Value, Then Slips Marginally

Yesterday marked a historic day for Apple, as it became the first company to hit the huge mark of $3 trillion in stock market value.

On the first day of trading of 2022 (3rd January), the Silicon Valley company's shares hit an intraday record high of $182.88, which raised Apple's market value a notch above the $3 trillion mark.

However, it couldn't hold that mark throughout the trading day and ended with a market capitalization of $2.99 trillion.

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Testimony Of Investors' Confidence

Nevertheless, Hitting that massive market cap of $3 trillion in itself shows the investors¡¯ confidence in Apple continuing to launch best-selling products as it explores newer markets such as virtual reality and automated cars, besides the expectation that consumers too, will continue to shell out top dollars for Apple products like iPhones, MacBooks, as well as services such as Apple TV and Apple Music.

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The Rise Of Apple¡¯s Market Cap

Apple's shares have climbed close to a massive 5,800% ever since its co-founder and former CEO Steve Jobs unveiled the very first iPhone in January 2007.

Even under the current CEO Tim Cook, who took over the role in 2011 following Steve Jobs' death, Apple has witnessed a sharp rise in its revenue from services such as video streaming and music. All that has helped Apple get relief from solely relying on iPhones. Through this, the proportion of iPhones has dropped from over 60% of total revenue in 2018 to about 52% in fiscal 2021.

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The $1 and $2 Trillion Mark

In August 2018, Apple's market value had first crossed the $1 trillion threshold and then, in August 2020, it surpassed the $2 trillion mark. Since then, Apple has shared the $2 trillion club with Microsoft, whereas the $1 trillion club includes the likes of Tesla, Amazon and Alphabet. Since last month (December 2021), it was being expected that Apple was about to reach the $3trillion mark soon, which it indeed has finally achieved.

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The Road Ahead?

Some investors still worry that Apple is nearing the limits as to how much it can further expand its user base and how much money it can continue to squeeze from users, as there¡¯s no guarantee that future product categories will prove as lucrative as Apple¡¯s iPhones.

However, there¡¯s no doubt that the rapid rise and scope of technologies such as 5G, virtual reality as well as artificial intelligence have also boosted future prospects for Apple and other big tech companies.

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