Apple Becomes World's 1st Private-Sector Company Worth $1 Trillion

Daniel Fowler
August 4, 2018

What seemed to be once unthinkable is now a reality: with Apple's stock price hitting an all-time high of $207.05 on Thursday, the tech titan has become the first listed United States company to boast of a trillion-dollar market valuation. In addition, that is, to shepherding a decade-long succession of iconic products that transformed Apple from a technological boutique to a cultural phenomenon and moneymaking machine.

Apple's share price pulled it to $1 trillion in market capitalization on Thursday.

But Cook has capitalized on the continuing popularity of the iPhone and other products invented under Jobs' reign to sell services tailored for the more than 1.3 billion devices now powered by the company's software. Its market value might be double that of Apple or even more.

Oil giant PetroChina (PTR) briefly topped a trillion dollar valuation in 2007 when its stock began trading in Shanghai, but shares quickly plunged afterwards.

Apple is the first private sector company to reach this level. For those who like visuals, in numerals that is 1,000,000,000,000.

Its shares have increased more than 2.5 per cent so far this afternoon, bolstered by positive quarterly results for the Cupertino company in which it smashed analyst expectations.

"With the company's sales reorganisation firing at all cylinders and last year's re-org in rear view, we expect solid execution amid a strong demand environment to drive ongoing double-digit growth", Piper Jaffray analysts led by Alex Zukin wrote in a note.

Trump proposes raising tariffs to 25% on $200 billion of Chinese imports
In early July, the USA government imposed 25 per cent tariffs on an initial $34 billion of Chinese imports . It would represent a ramping up of pressure over Washington's trade standoff with Beijing.

The company is in the unique situation of controlling the hardware and software in its mobile devices, with content for users required to go through its App Store that takes a percentage of revenue.

"I think the biggest challenge for Apple will be the move to the cloud, as Apple does not own the cloud in the same way Google, Amazon and Microsoft do".

CEO Tim Cook celebrated the moment in an all-staff memo by acknowledging it as a "significant milestone" that gives Apple's workers "much to be proud of", while adding that it is "not the most important measure" of Apple's success. Congratulations to Apple for reaching this milestone!

As a supplier of the cutting-edge screens used on the iPhoneX, this supplier is on the front lines of the products that will drive Apple's growth - and profits.

Apple, the world's most valuable publicly traded company, may be seriously undervalued, said longtime tech investor Eric Jackson, founder and president at EMJ Capital.

Amazon, Microsoft and Alphabet are in a tight race to become the second USA company to reach the $1 trillion milestone.

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