Published: Thu, August 02, 2018
Money | By Ethel Goodwin

Apple’s Market Cap Hits $1 Trillion

Apple’s Market Cap Hits $1 Trillion

The company's Chief Executive Officer Tim Cook, in a call with investors, touted the company's growth in sectors such as smart home products, wearables and services such as the App Store and Apple Pay, National Public Radio reported.

The tech company, launched in 1976 in a Los Altos garage, revolutionized personal computing - popularizing experimental technologies developed in the Xerox Parc research labs, such as the mouse and graphical user interface. Apple announced $100 billion in stock buybacks on May 1, the largest repurchase ever by a US public company.

The creator of the ubiquitous iPhone is up more than 25 percent this year.

Apple has won the race to a $1 trillion valuation ahead of its so-called FAANG rivals (Facebook, Amazon, Netflix, Google). By a year ago, its sales had grown more than 11-fold to US$229 billion - the fourth highest in the S&P 500 - and net income had mushroomed at twice that rate to US$48.4 billion, making it the most profitable publicly-listed USA company.

Adjusting for four stock splits over the years, Apple debuted on the stock market for the equivalent of 39 cents a share on Dec 12, 1980, compared to Thursday's high of US$207.05. After launching the iPhone - arguably its most famous product - in 2007, Apple now churns out over 40 million of the devices every quarter, helping it rake in $254.63 billion in revenue past year. "A clean beat on the path to $1 trillion".

What makes it impressive is that Apple buys back a lot of its stock. Since 1980, IBM, Exxon Mobil, General Electric and Microsoft have also alternated as the largest publicly listed USA company. As a result, Apple has become the first company in history with a market cap in excess of $1 trillion.

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