Analysts expect the company’s meteoric rise to continue as it eyes new markets such as autonomous cars and virtual reality.
Driven by high global demand for its products and services along with strong investor confidence, Apple has become the first publicly traded company to cross the $3trn valuation mark.
The iPhone maker reached the milestone yesterday (3 January) after its share price briefly jumped to $182.88, according to Reuters, before closing at $182.01 with a market value of $2.99trn.
The achievement is notable because Apple only crossed the $1trn mark in August 2018 – a feat that took it 42 years since its inception in a California garage. Within two years, Apple crossed $2trn in valuation and its third trillion took it less than 17 months.
Yesterday’s trading showed that investors are optimistic about the company’s prospects in the new year as it continues to roll out new products and services including its flagship iPhone, MacBooks, Apple Music and TV, as well as a possible self-driving car in the pipeline.
“The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,” Scott Wren, senior global market strategist at Wells Fargo Investment Institute, told Reuters.
Despite supply chain issues caused by the ongoing global chip crunch, Apple saw record-high revenues of $83.4bn in its last quarter, up 29pc year on year. While the iPhone accounted for nearly half the revenue, Apple also saw strong growth in its services segment.
Analysts see plenty of room for Apple to grow as the company explores new markets such as autonomous cars and virtual reality. Gene Munster, a managing partner at US tech investment firm Loup, told CNBC this week that Apple will be a key player in the metaverse.
The company was joined by fellow Big Tech player Microsoft in the $2trn market value zone last summer and it may soon follow the iPhone maker past the $3trn mark. Meanwhile, Alphabet and Amazon are close to the $2trn barrier and oil giant Saudi Aramco is the only non-tech company in the trillion-dollar company club.
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