How Apple becomes the most valuable company
This year
2K20
Apple the most valuable publicly traded company in the world.
Overtaking Aramco as its market cap soared past $2 trillion
For the first time ever
and that is a $2 trillion milestone. Shares of the company increased nearly 60% this year. I mean, it... But the company's road to $2 trillion hasn't been a straight climb. After founder, Steve Jobs passed away in 2011, many investors doubted that his successor, Tim Cook could fill his shoes and propel the company forward. Really a trillion-dollar market cap wasn't part of the discussion back then. It was much more about whether Tim Cook could even sustain the level of success that they'd had. But amidst lawsuits, regulatory investigations, and an ongoing trade war, Apple's shares have surged. This is how Apple became the most valuable publicly traded company in the world. Introducing Apple II, the easy-to-operate home computer. Apple first launched its Apple II home computer in 1977, revolutionizing the industry in the world. But to follow its rise to the very top, a good place to start is August 2018. When Apple reached its $1 trillion market cap, for the first time ever surpassing other tech giants by billions of dollars. Apple is now as valuable as the four biggest US banks combined. And if you'd put $10, 000 in Apple in 1980 today, you'd the millionaire The company was coming off one of its strongest years since the death of Steve Jobs.Apple had had some stumbles up through 2016 and there were doubts about Tim Cook's leadership and the company's product prospects in the China market. Things started to stabilize really later that year and in 2017 and by 2019, I think people had a sense that the company was really clicking again. The iPhone 10s had come out and you saw the stock just continued to rise and rise and rise and then in the middle of 2019 it kind of shot out to get over the milestone. In July 2018, the company reported its best third quarter ever. Its flagship iPhones remained widely popular and sales from the app store and other services had hit all-time highs, but this wasn't going to last. About a month later,
Apple released a new suite of iPhones, which included its most expensive model yet. This is the iPhone 12S. It is the most advanced we've ever created. They were riding high in 2020 going into the launch of the new phones later that year, they were sounding very confident that those phones would succeed. But things didn't go as expected. In January 2019, Apple announced it had missed its expectation for iPhone sales. This had a lot to do with the ongoing trade war between the US and China. The Chinese economy was suffering and purchases of iPhones in China fell sharply. The higher price phone, I think people felt underwhelmed by the new features and questioned whether it was worth spending that much. In response, the company slashed its quarterly revenue forecast for the first time in over 15 years. Since its peak, the company lost more than $400 billion in market value. 2018 turned out to be Apple's worst yearly stock performance since the financial crisis. And for some skeptics, this fall from grace seemed to confirm their doubts that Tim Cook would successfully lead the company. Then in March 2019, Cook moved to dramatically expand his strategy, the company started in 2017.- Today, we're excited to extend our services even further, making them even more entertaining, more useful, and more informative. During a special event in Cupertino, California the company announced the Apple credit card, Apple TV plus, and a number of new finance gaming and new services. This was something that had already been set in motion before and that Tim Cook had really been hammering on for a couple of years at that point. And it was really part of an effort to transform the company
from being focused on gadgets to be focused on gadgets and the services that attach themselves to those gadgets. Amid press around the event, Apple stock price continued to rise. The company's big bet on service was starting to pay off. In the spring of 2019, the US-China trade war was gathering momentum. Donald Trump was threatening and imposing a new tariff and there was a great concern for Apple that its iPhones and other gadgets could get more expensive for US consumers as a consequence of this. For years, Trump has pressured Apple to move more of its production to the US. And that was something that really wasn't feasible on a mass scale for Apple. In fact, around this time, they were planning to shift manufacturing of the one product that they were still making in the US over to China and that was their highest-end Mac desktop computer. Cook was able to largely navigate around the tariffs and avoid having much damage to Apple as a consequence. With key products, such as iPhonesexempted from sanctions, Apple stock continues to gain momentum. But amid a surge of growth, Apple's new focus on services brought scrutiny from federal regulators. In the US the company faced antitrust probes related to its app store where many of the services are based. But this didn't seem to faze investors. Over the course of the year. Apple has bought back around $80 billion worth of its own shares, further juicing the stock price. And by January 3rd, the company's share price had more than doubled from the year before. Apple's future looked promising and then this happened. Chinese authorities have traced a new deadly virus back to this seafood market in the city of Wuhan. The coronavirus has spread to countries across the world. So via border restrictions and global share market free falls,attesting our politics, economies, and society.
As the coronavirus pandemic spread across the world, Apple's manufacturing hubs in China were hit, especially hard. Like most companies, Apple state knows that have been in February of this year, the coronavirus was scaring investors and Apple was probably more exposed to it than most companies because it had emanated from China. Apple's contract manufacturers in China had to close their factories for a time as they dealt with the coronavirus impact. But Apple stock quickly bounced back. In the US the federal reserve enacted a colossal stimulus plan to pump cash into the economy, lifting the markets, including stocks like Apple, as people's lives changed, technology became even more essential.How is this whole working from home thing going for you?
During the pandemic period, people were at home
had to work and their children had to use computers or tablets to be able to go to school. People didn't have any other entertainment other than what they could do at home. So they were watching more TV programming and streaming music and downloading apps. All of that benefits Apple. On July 30th, Apple released an earnings report that highlighted an 11% increase in revenue. In April, we expected year-over-year performance to worsen, but we saw better than expected demand in May and June. We attribute this increase in demand to several interactive causes, including a strong iPhone SE launch, continued Following the news, Apple shares continued to balloon and on August 19th, the company reached a $2 trillion market cap for the first time ever becoming the most valuable publicly-traded company in the world. At this point, few people would bet against Apple's ability to execute, but at the same time, there's no guarantee the stock is gonna keep going up the way it has. Apple faces a number of significant challenges on the regulatory front, it's a subject of antitrust investigations in the US and Europe, it's also at war with a number of companies that are criticizing it over its business practices in the app store and elsewhere. And it's more exposed than probably any other American company to the US-China trade Wars. In the midst of a volatile market, Apple shares continue to see big swings.☺
nyc
ReplyDeleteSubhanAllah❤️
ReplyDelete