Apple Inc became the first US company to hit US$3 trillion in market value, briefly reaching the landmark on Monday in the latest demonstration of the tech industry’s surge amid the COVID-19 pandemic.
The iPhone maker scaled the record level near 6:45pm GMT, reaching US$182.88 a share before slipping back slightly.
The tech giant also was the first US company to hit US$2 trillion in August 2020, with the pandemic stoking demand for personal electronics and digital services, such as Apple’s streaming and smartphone app store.
Photo: Reuters
It was the first US firm to overtake US$1 trillion in August 2018.
The surge marks the latest accomplishment for Tim Cook, who became chief executive of the Cupertino, California-based firm in 2011 shortly before the death of company cofounder Steve Jobs.
While the top tier of US stock markets are dominated by Silicon Valley companies, Microsoft Corp is the only other US firm worth more than US$2 trillion.
In October, Apple reported net income of US$20.5 billion on revenue of US$83.4 billion, a record for the quarter ending in September.
The company’s fiscal 2021 revenue was US$365.8 billion, more than triple the level of a decade ago.
However, as with many other tech giants, Apple has seen pressures in recent months due to supply chain problems, including a global shortage of semiconductors and COVID-19-related manufacturing disruptions in Southeast Asia.
Apple shares tumbled following that October earnings report, but rallied thereafter, winning nearly 20 percent in November and last month.
About 45 years after its establishment, which helped make PCs mainstream, Apple’s revenue today is mostly closely tied to the iPhone, which was first unveiled in 2007.
However, increasingly smartphones are also crucial gateways to services revenue, an increasingly pivotal component of Apple’s prowess.
Revenue for services, which include the Apple TV streaming product and the Apple Pay services, have tripled over the past five years.
Cook has won over Wall Street with clear communication and effective execution as he has helped build new business, including wearables, which accounted for more than US$38 billion in sales last year.
Like other Big Tech honchos, the Apple CEO has parried lawmakers on Capitol Hill.
While Apple’s image has arguably emerged less bruised than some Big Tech names, it is hardly free of controversy.
The tech giant has clashed in court with Fortnite creator Epic Games Inc, which has sought to break Apple’s grip on the App Store, accusing the iPhone maker of operating a monopoly in its shop for digital goods or services.
A federal judge in November ordered Apple to loosen control of its App Store payment options, but said Epic had failed to prove that antitrust violations had taken place.
Apple has also recently sparred with regulators in Europe.
In November, Italy’s competition watchdog imposed fines totaling more than 200 million euros (US$225 million) on Amazon.com Inc and Apple, saying that a 2018 deal between the two giants had “barred official and unofficial resellers of Apple and Beats products from using Amazon.it, allowing the sale of those products in that marketplace only to Amazon and to selected parties in a discriminatory manner.”
Apple shares on Monday closed up 2.5 percent at US$182.01.
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