Apple becomes 1st private company worth $1 trillion

Daniel Fowler
August 3, 2018

The Silicon Valley stalwart's stock has surged more than 50,000 percent since its 1980 initial public offering, dwarfing the S&P 500's approximately 2,000-percent increase during the same nearly four decades.

On Thursday, Apple became the first U.S. company to ever reach a $1 trillion worth when its shares climbed past $207.05, even reaching a new all-time high of $208.38.The record-breaking shares came after the firm announced impressive earnings that beat even optimistic forecasts. Apple's first product, all hand-built by Wozniak, was the Apple-1, basically a DIY computer without a case.

Apple CEO Steve Jobs speaks during an Apple special event in Cupertino, Calif., April 8, 2010.

Appleis the first private sector company to reach this level. "This trinity established Steve's vision and created the Apple we know today". Under his leadership, the iPhone has been persistently popular around the world, reaching over 1.4 billion units sold.

The iPhone maker was named as the only publicly listed United States company to be valued at $1,000,000,000,000 just before 5pm this afternoon. By 1997, the company was close to bankruptcy.

Tim Cook became CEO just six weeks before Jobs passed away on October 5, 2011.

Apple came of age of age at such a speed that it surpassed a giant like Exxon, which is still a very profitable oil company.

Apple is officially the first American company to hit a $1 trillion valuation. Once the noise has died down share price may see a slight drop and they may not remain at the trillion dollar mark. It's taken longer than I thought.

Hundreds report illnesses after eating at Ohio Chipotle
The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan, New York, U.S., June 28, 2018. Diversified Restaurant has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Jobs was a cult of personality synonymous with Apple Inc. After the iPhone, profit soared and a huge cash pile grew. "Basically, it is still the iPhone company", he added. The latter move has helped the company maintain smartphone growth in an industry that's now contracting.

But this isn't another tale of Apple's impossible-to-believe profit power, because Apple isn't the powerhouse that it used to be. "Tim has deftly proven otherwise". The company faced a backlash when it replaced Google Maps on the iPhone with a buggy and unreliable Apple Maps app in 2012.

Cook has consistently touted innovations in the pipeline at the famously secretive company.

The milestone was crossed when Apple's stock hit $207.05 share, and comes just days after Apple reported its third quarter fiscal earnings. So much for the theory that the iPhone X was too expensive.

Gold prices inched downward after Fed's upbeat assessment of the economy to the lowest price in more than a year as the dollar, which typically has an inverse relationship with gold, rose.

Consider the plight of Exxon Mobil, which was the most valuable US company five years ago.

In fact, Amazon, Alphabet, and Microsoft could soon be joining Apple over the $1 trillion threshold - currently, they're worth $886 billion, $844 billion, and $825 billion respectively.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER