Apple is now America’s most valuable company; it is valued at $ 2 trillion.
Apple (AAPL) has officially become the first American company with a staggering $ 2 trillion worth.
The iPhone maker hit the market after its share price hit $ 467.77 on Wednesday, raising its market capitalization more than any other US company in history.
Apple’s rise to $ 2 trillion comes after hitting $ 1.5 trillion in June and two years after it topped $ 1 trillion for the first time.
Since then, both Amazon (AMZN) and Microsoft (MSFT), two other high-flying tech stocks, have crossed the and a trillion mark and are now valued at more than $ 1.5 trillion.
CEO Tim Cook and the company have been building on the strength of Apple’s iPhone sales for years. The phone, which launched in 2007 under the direction of then-CEO Steve Jobs, was transformative for the company, putting it at the forefront of the still fledgling smartphone industry and never looking back.
More recently, Apple, seeing a slow decline in smartphone sales growth alongside the rest of the industry, has been putting pressure on other sectors of its business, including services and wearable devices.
The consumer tech giant doubled down on offerings in both areas, launching Apple Music and Apple TV +, as well as introducing the Apple Watch and the now-iconic AirPods. Apple is now among the world’s leading manufacturers of portable devices thanks to the strength of those two devices.
Apple’s future growth
But analysts still see more room for growth.
“I think this is a monumental achievement for Apple, especially since many doubters thought that the growth story in Cupertino had ended years ago,” Wedbush analyst Dan Ives told Yahoo Finance.
That is why he believes that it all comes down to the installation base. The company has an unrivaled facility base, which now, greater monetization through services, has been the key to success.
Apple is also set to launch its new flagship smartphone, the iPhone 12, later this fall. And while the device will be delayed beyond its normal late-September launch window due to the coronavirus pandemic, according to Wedbush analyst Dan Ives, it is expected to trigger what is now a sales “supercycle,” or a massive increase in the number of people buying new iPhones.
The iPhone 12 is expected to be the company’s first device to include 5G cellular capabilities, offering superior download and upload speeds compared to existing 4G LTE data connections.
The change is likely to appeal to iPhone owners who have clung to their devices for several years thanks to the promise of better video streaming and downloading, and the wide range of possibilities the faster connection will offer.
But Apple is also making structural changes to its products to ensure it can get even more margin from its products. The company is currently in the process of developing its own processors for its Mac product line, leaving behind the Intel processors it has relied on for years.
Not only will the move unlock additional headroom for the company, which will no longer have to pay Intel fees, but it could further boost Apple’s laptops and desktops in terms of gross performance power.
Apple, however, is also in the middle of several inquiries about its business practices.
The firm faces investigations by a coalition of state attorneys general, the Department of Justice and the Subcommittee on Antitrust, Business and Administrative Law of the House Judiciary Committee into whether current App Store policies create an illegal monopoly. for Apple.
More recently, it has taken on Epic Games, the maker of Fortnite, for commissions of 30% from Apple’s App Store.
The outcome of those investigations is unclear, but experts believe there is little chance that they will end with the iPhone maker’s breakup.