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Apple became the first US company to hit $2 trillion
in market value
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Apple on Wednesday became the first US company to
reach $2 trillion in market value in the latest demonstration of how tech
giants have benefited from the upheaval of the coronavirus.
The iPhone maker attained the distinction in
mid-morning trading and was up 1.1 percent at $467.18 near 1545 GMT. The
company had previously become the first giant to hit $1 trillion in market
value in March 2018.
Apple is followed by other technology companies, including
Amazon, Microsoft and Google parent Alphabet, all of which now have more than
$1 trillion in market value.
Shares in Apple have roughly doubled from March lows,
an astonishing performance which has lifted chief executive Tim Cook's net
worth to $1 billion for the first time, according to a Bloomberg Billionaires
Index calculation.
Even as other large tech firms have shot higher on
robust demand during lockdowns, Apple has outpaced its rivals by delivering
strong sales of gadgetry including wearables and tablets, along with new apps
and services which have gained ground during the global health crisis.
"Apple has been wildly successful in building out
its platforms, mitigating the fact that iPhone sales had peaked, by building
products that surround it and services that enhance it," said Avi
Greengart, analyst with the consultancy Techsponential.
"It all feeds back into the cycle for
Apple."
In the past quarter ending in June, Apple reported
profits climbed eight percent to $11.2 billion and revenues jumped 11 percent
to $59.7 billion.
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Analysts say Apple CEO Tim Cook deserves credit for
the company's surge
over the last decade
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Work-from-home
A major factor in Apple's success has been leadership
from Cook, who took over just ahead of the death of Steve Jobs in 2011.
"He didn't invent anything, but what he has done
is keep a firm hand on the tiller, steering the ship and keeping the culture
intact," said analyst Laura Martin at Needham & Company.
"He deserves a lot of credit for making the most
out of Steve Jobs's inventions."
Apple's rise comes amid a broader rally in technology
shares as employees around the country shift to working at home amid the
coronavirus pandemic and social distancing protocols.
The tech-rich Nasdaq has hit records more than 30
times in 2020, including on Tuesday.
In the most recent quarter, Apple enjoyed a modest
rise in smartphone revenue and robust increases in sales of iPads and Mac
computers amid elevated demand for remote education and work-from-home buyers.
The company also benefited from services such as
digital payments and streaming and from increased sales in smartwatches as
interest in health and fitness applications rises.
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People queue up to enter a new Apple flagship store
that opened in Beijing
in July 2020
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Success brings scrutiny
The ascendancy of Apple and other tech giants has
prompted increased oversight from regulators and lawmakers, including on
Capitol Hill, where Cook and the CEOs from Amazon, Facebook and Google all were
grilled at a high-profile July 29 hearing.
"Simply put, they have too much power," said
Representative David Cicilline, a Democrat from Rhode Island who chairs the
panel that convened the hearing.
During the session, Cook faced tough questioning over
the market power of the company's App Store and its treatment of developers.
Analysts expect more scrutiny ahead for Apple and the
other giants, but it isn't clear yet whether the questioning will lead to
meaningful change.
Some analysts believe efforts to break up tech giants
or otherwise reign them in could gain momentum if Democrats sweep the 2020
elections.
Another wildcard for Apple involves risks from
heightened tensions between the United States and China, since Apple not only
manufactures iPhones and other products there, but also relies on that market
for a large chunk of sales, Greengart noted.
US President Donald Trump has been ratcheting up
pressure on Beijing through restrictions on leading Chinese tech firms. Any
retaliation against Washington by China could cause troubles for Apple, analysts
say.
"Wild Cards" (3) - Nov 19 - 20, 2016 (Kryon Channelling by Lee Carroll) - (Text version)
Related Articles:
"Wild Cards" (3) - Nov 19 - 20, 2016 (Kryon Channelling by Lee Carroll) - (Text version)
"... Then there was Steve Jobs. He was a wild card. What he did had little to do with technology, for that would have happened anyway soon enough. Instead, it had to do with the paradigm of the business of music on Earth. He freed it, and the paradigm of how music is obtained and heard will never be the same. However, Steve Jobs did basically one thing for all of you, and then he died. Do you see any kind of connecting of the dots to some of the inventors who come and give you the one thing, then leave? If he had lived, would there be more? Yes, but you’re not ready for it. Consciousness has to support what happens. ..."
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