Apple Inc became the first firm to reach a stock market valuation of $3 trillion on 3rd January 2022, before closing the day a hair below that level, as investors believe the iPhone manufacturer will keep releasing best-selling goods while foraying into new areas like driverless cars and virtual reality.
Apple has always been a risk taking business. It doesn’t shy away from launching a product due to fear of failure and hence, it has been usually seen as a risky venture in the financial markets. This topsy-turvy curve of Apple’s stock prices growth touched new heights recently closing all time high at 182.01. Though the value slipped a bit to close at $2.99tn, still a feat only achieved by Apple.
“It’s a fantastic accomplishment and certainly worthy to be celebrated,” said Jake Dollar hide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “It just shows you how far Apple has come, and how dominant it is seen as in the majority of investors’ eyes.”
Apple has seen tremendous growth year on year basis. It’s prices have risen by 5800% since 2007, when Steve Jobs unveiled its first ever iPhone, marking a start to a great business, which today contributes to around 50% of the company’s sales.
It took Apple 16 months to grow from a $2tn firm to a $3tn firm. A historic feat in itself helps Apple in proving doubters wrong. Apple is one of the biggest winners after a tense session for other industries during the pandemic as people became more dependent on smartphones, tablets etc. and especially the new working arrangements of working from home made people spend more on gadgets for a comfortable workspace.
Though Apple is famous for its iPhone, iPad and Mac computers, an increasing part of its popularity is attributed to sale of softwares through apple store and iCloud storage and services like Apple Music, television and so on.
When seen in comparison, Apple’s growth in the last fiscal year rode on the success of its sale of upgraded 5G phones which contributed to 33% of its revenue. This is because of the fact that Apple has created a huge ecosystem of 1 billion iPhone owners who rely on its services.
But there are few critical views regarding Apple’s huge growth in the international market, which points to the fact that Apple may have achieved its peak because there is only so much that it could squeeze from its consumers. Moreover, it is predicted by economists that the prospects of new additions to its products based on augmented and virtual reality are bright but would only contribute 4% to its revenue by 2030.
Apple is on an upward trajectory which it needs to sustain by taking adequate steps, because after a peak comes the trough, which can be harsh for the company’s futuristic growth plans.
According to new data from Counterpoint Research, Apple maintained its lead in China, the world’s largest smartphone market, for the second month in a row, surpassing rivals like as Vivo and Xiaomi.
Many investors expect Apple to produce its own vehicle over the next several years, with Tesla now the world’s most valuable automaker as Wall Street invests heavily on electric cars.