California/New Delhi | Jagran Technology Desk: Steve Jobs-founded Apple Inc.’s market value became the first organisation in the corporate history to rise above $3 trillion mark on Monday. Since October 2021 till January 2022, the iPhone maker has added $700 billion to its market capitalization, up by 200 per cent since COVID-19 became a pandemic in March 2020.
This is roughly 17 months after Apple crossed the $2 trillion valuation mark. Apple's market value first crossed the $1 trillion mark in August 2018 and took over $2 trillion valuation mark in August 2020. According to World Bank data, Apple’s value is now greater than $2.76 trillion GDP of the United Kingdom and India’s GDP figure of $3.01 trillion but short of Germany’s $3.85 trillion GDP.
The $3 trillion milestone is, however, mostly considered symbolic but underscores investors’ recognition of Apple’s success over the past few years.
The iPhone sales: Slower before COVID-19, boosted during pandemic
In 2020, 52 per cent of Apple’s overall revenue came from the sale of iPhone sales, according to the statistics shared by the company. However, the annual sale of the iPhone have been on decline after peaking at 231.2 million units sale in 2015. The iPhone sales hit a new low in 2018 when Apple could sell only 165.5 million units of its most sought-after product.
Despite fewer iPhones being sold, the total revenue generated out of its sale remained consistent between 2017-2019 due to rising prices of newer iPhone models.
At the same time, the COVID-19 pandemic reinforced the growth in iPhone sales. According to a report in the New York Times, the iPhone sales increased by nearly 40 per cent during the 12-month period ending September 2021.
Another report by investment firm Wedbush Securities points out that the demand for Apple products exceeds supply by 12 million units at present due to supply-chain issues created by COVID-19 pandemic. This exact demand continues to build perceptive realities of stock market in New York in Apple’s favour, following which its valuation continues to be on an upward trajectory.
Wedbush Securities also predicted the release of an Apple Car by 2025, prompting further growth for the company and faith of its investors in Apple’s ability to diversify and reinvent.
Which are other most valued companies at present?
Apple’s closest rivals are Microsoft, valued at $2.53 trillion at the end of 2021, Google parent company Alphabet, valued at $1.92 trillion, and Amazon, valued at $1.69 trillion.
Not all tech companies saw such ‘dramatic growth’ during pandemic, how come Apple?
This is because in a unique step to strengthen its stock value, Apple issued $1,80,000 stock bonuses to some of its top engineers to prevent defections to its competitors such as Facebook’s parent company Meta and Google’s parent company alphabet.
Posted By: Mukul Sharma