Apple News| Apple Passed $2 Trillion In Market Value

Among its many accomplishments — the iPhone, the iPad, iTunes, the App store — Apple can now boast of one more. The company is now briefly worth more than $2trillion in market value. Accordingly, Apple also becomes the first company in the US to reach that milestone. Here is our overview to help you have a better look at this event.

Apple Double Their Market Value In Two Years

It took Apple 43 years to reach the milestone of $ 1 trillion in market capitalization. But it only took two years to double that number t. What more amazing and impressive about this achievement is that Apple manages to reach it while the global economy was in decline due to the COVID-19 pandemic.

As recently as March, Apple’s market cap fell below $ 1 trillion, after the stock market plunged over concerns about the Covid-19 epidemic. But then, the share prices of tech giants Apple, Microsoft, Alphabet, Google, and Facebook have steadily surged.

On Wednesday, Apple became the first US company to reach a market capitalization of $ 2 trillion, after the value of its shares rose by 1.4% to $ 468.65. It was a major milestone for the iPhone’s maker, cementing its title as the world’s most valuable company, and showing that the Covid-19 pandemic was unlikely to stop the growth of the tech giant.

Opportunity for the Tech Giants During The Pandemic

Investors have poured billions of dollars into these tech giants over the last few months. They are betting that the tech companies’ immense power will serve as a refuge in the economical crisis caused by the Covid-19 epidemic.

Together, the market value of the five tech giants has increased by nearly $ 3 trillion since March 23. That’s equal to the growth of 50 companies in the top S&P 500 combined. This includes billionaire Warrent Buffett’s Berkshire Hathaway, Walmart, and Disney. Apple alone, its market capitalization has grown by about $ 6.8 billion per day, more than the value of American Airlines.

“These companies have become the safest flights,” said Aswath Damodaran, a professor of finance at New York University.

The fact that Apple has so rapidly increased its market value to $ 2 trillion is especially staggering, as the iPhone maker hasn’t done much new in the past two years. Apple has simply built a complete ecosystem, embracing the way people communicate, entertain, and shop. To the point where Apple no longer needs to rely on breakthrough innovations to keep its business afloat.

Apple

Tim Cook’s Leadership Is The Key To Apple’s Success

Apple was worth $ 1 trillion in the market value for the first time in August 2018, after decades of innovation. The company founded by Steve Jobs and Steve Wozniak in 1976, has created many world-changing products such as the Macintosh computer, iPod, App Store, and iPhone.

Apple under Steve Jobs, generally shaped by revolutionary new product innovations, completely changed the industry. But under CEO Tim Cook, Apple’s most breakthrough invention was the ability to make a profit despite all the difficult circumstances. Tim Cook has built an incredibly complex global supply chain to maximize profits, focusing on one product line to keep customers in its ecosystem, so they keep buying new devices, new accessories, and pay for Apple services. Since then Apple has mainly modified and refined its past breakthrough inventions. It publishes them under new names like the Apple Watch Series 5, Air Pods Pro, and iPhone 11 Pro Max. Apple also focuses more on services and software, selling subscriptions to Apple Music, or charging fees from iOS app developers.

Apple, under Cook, prospered unprecedentedly. Since starting the company in 2011, the year Steve Jobs passed away, Apple’s revenue and profits have steadily doubled, and its market capitalization has surged from $ 348 billion to $2 thousand billion USD. The company currently holds $ 81 billion in cash, excluding debt, and has paid $ 475.5 billion in dividends to shareholders. From April to June 2020, even with many Apple Stores closed, their profit still reached $ 11.25 billion. The profit has grew by 12% compared to last year. The company’s earnings report last week caused its stock to rise more than 10% in just one day.

Tim Cook

The Tech Giants Has Become More Powerful

Besides Apple, Amazon, Microsoft, Facebook, and Alphabet also made billions of dollars during the pandemic and economic recession.  However, the overwhelming influence of these tech companies has forced the Government to put them under intense restrictions. Last month, the top four tech CEOS even had a hearing in Congress.

David Cicilline, a Democrat and chairman of the House of Representatives is investigating these tech giants’ rapid development. He thinks that these companies may have the ability to apply dictatorial or punishment policies to other companies.

Last week, the incident between Apple and Epic Games showed the power of the App Store. Apple takes advantage of the exclusive app store and ecosystem on iPhone and iPad devices to charge 30% of all payments through the developer’s app. When Epic Games introduced its own form of payment in the Fortnite game, it was immediately removed from the App Store by Apple and threatened to punish more strongly.

Once the power of these five tech companies becomes too great, the entire world economy will depend on them. We can see a lot of small technology companies, a lot of suppliers are dependent on Apple. Or like many advertising and publishing companies are dependent on Facebook. That could threaten the development of the world economy fairly and equally.

The Tech Giants is becoming too powerful

There you go, now you have our overview of the event of Apple passed $2 Trillion In Market Value. What are your opinions on this event? Let us know in the comments!