Apple has achieved a historic milestone by becoming the first publicly traded company to conclude a trading day with a market value surpassing USD 3 trillion. This accomplishment underscores Apple's position as a technological juggernaut that has reshaped society with its exceptional product lineup, resulting in substantial profits.
On Friday, Apple shares closed with a notable 2.3 percent increase, reaching a price of USD 193.97. This surge propelled Apple's market value to an unprecedented USD 3.04 trillion. Alongside notable technology companies like Microsoft and chipmaker Nvidia, Apple has played a significant role in driving the S&P 500 to a gain of nearly 16 percent in the first half of the year.
With a rich history spanning 47 years, Apple, co-founded by Silicon Valley legend Steve Jobs, briefly surpassed the USD 3 trillion market value milestone on consecutive days in January 2022. However, it was unable to sustain this valuation by the market's close. Subsequently, Apple's stock experienced a prolonged descent, momentarily pushing its market value below USD 2 trillion earlier this year. This decline was influenced by a slowdown in growth and investor concerns regarding rising interest rates, which affected the broader technology sector.
It was not until earlier this month that Apple once again approached the USD 3 trillion threshold, coinciding with the company's introduction of a potentially groundbreaking product—the Vision Pro. This high-priced headset immerses users in artificial settings through virtual reality technology, igniting renewed interest and optimism surrounding Apple's future prospects. While achieving a USD 3 trillion market value holds symbolic significance, its magnitude is awe-inspiring.
To provide context, USD 3 trillion could purchase nearly 9 million homes in the US based on the average sales price calculated by Zillow. It could also acquire the 50 most valuable sports teams globally with ample funds remaining. If USD 3 trillion were evenly distributed among every person in the United States, each individual would receive approximately USD 9,000.
In terms of market value, Microsoft follows as the second most valuable publicly traded company at USD 2.5 trillion, while oil giant Saudi Aramco boasts a market value of USD 2.08 trillion. Alphabet (the parent company of Google), Amazon, and Nvidia also possess market values surpassing USD 1 trillion. Apple took less than two years to reach a USD 3 trillion market value after surpassing USD 2 trillion for the first time in August 2021, which occurred approximately two years after reaching the USD 1 trillion mark.
The cascading trillions are the result of the technology empire Apple has built since Jobs' return to the company in 1997. At that time, Apple faced significant financial challenges and sought assistance from its former rival, Microsoft, for a cash infusion.
Currently, Apple generates substantial profits, allowing it to allocate approximately USD 105 billion annually for investor dividends and stock repurchases, while still maintaining a cash reserve of nearly USD 56 billion at the end of its most recent fiscal quarter.
The iPhone, introduced by Jobs in 2007, remains the cornerstone of Apple's success, accounting for over half of the company's nearly USD 400 billion in sales last year.
Apple's revenue streams also encompass other products such as the Macintosh computer, iPad, Apple Watch, AirPods, and a services division that includes music and video streaming, warranty programs, fees from the iPhone app store, and advertising commissions paid by Google to be the default search engine on the iPhone. Although many of Apple's innovations were conceived during Jobs' tenure, a significant portion of its wealth has been generated under the leadership of its current CEO, Tim Cook, who assumed the position shortly before Jobs' passing in October 2011. When Cook took over, Apple's market value stood at USD.