Economy

Apple is first public company worth $1 trillion

Apple is first public company worth $1 trillion”

Apple has successfully reached a market capitalization of $1 trillion following this week's earnings release.

In the firm's posted financial results for the fiscal 2018 third quarter, Apple revealed a 17% increased quarterly revenue from a year ago of $53.3 billion and 40% higher quarterly earnings per diluted share of $2.34.

Apple is the first USA company to hit the $1T milestone; here's why AAPL shares can climb even higher.

FILE - In this April 24, 1984, file photo, Steve Jobs, left, chairman of Apple Computers, John Sculley, center, president and CEO, and Steve Wozniak, co-founder of Apple, unveil the new Apple IIc computer in San Francisco.

Apple's stock has risen over 30 percent in the past year, fueled by optimism about the iPhone X, launched a decade after the original.

China-based Huawei took the second-place spot from Apple in a tightening global smartphone market during the second quarter of this year, according to the International Data Corporation.

And an investor who bought in around the company's initial public offering would have made a very impressive return. The rise of Apple was brought forth by Steve Jobs' innovative products in the iPod, iPhone, and others, revolutionizing the way we view technology today.

After the death of master pitchman Jobs, analysts and other industry watchers wondered whether the company would lose its ability to create buzz for "the next big thing". At the same time, sales of iPad tablets and Mac PCs dropped 5% year-over-year.

In 2006 the company had sales of less than $20bn and posted profits of nearly $2bn.

"Apple is approaching the upper limits of what it can comfortably charge consumers for the iPhone", Neil Mawston, an analyst at Strategy Analytics, said.

Apple had also come under fire as it accumulated more than $250 billion in taxes in overseas accounts, triggering accusations of tax dodging.

But that calculus changed under the administration of President Donald Trump, who pushed Congress to pass a sweeping overhaul of the USA tax code that includes a provision lowering this year's rate to 15.5 percent on profits coming back from overseas.

Apple has sold more than a billion iPhones since the first model was unveiled by Jobs in 2007.

As Bloomberg pointed out, the number of shares outstanding has been falling about 1.3% per quarter as Apple buys back its shares.



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