Apple became the first company in the world to be valued at $3 trillion. On Monday, December 3, after its stock-market value rocketed, it became the first publicly-traded company to achieve the feat.
As per reports, shares of the company were up about 3 per cent touching an all-time high of $182.88, for a brief period, before closing at $182.01.
Steve Jobs and Steve Wozniak founded Apple in 1976 in a California garage,
Started by Steve Jobs and Steve Wozniak in a garage, Apple had to witness its fair share of ups and downs, particularly during the COVID times.
However, its value has increased remarkably in the past one year. It became the first American Company ever to achieve $1 trillion in 2018. Two years later to the first milestone, it surged past $2 trillion, and right after 16 months and 15 days to it, Apple reached $3 trillion.
Following this, tech giant Microsoft could soon join the $3 trillion club early this year.
"When we started, we thought it would be a successful company that would go forever. But you don't envision this," said Wozniak, reported The New York Times.
"At the time, the amount of memory that would hold one song cost $1 million," he added.
Apple's Valuation More than World's Cryptocurrencies
The mark of $3 trillion is indeed remarkable, which came after 42 years of the company's inception. In other startling facts, Apple's valuation is worth more than all the world's cryptocurrencies, roughly equal to the GDP of Britain and India.
It is equivalent to six JP Morgan Chases, the most prominent American Bank, or 30 general electrics.
Apple alone is about 3.3 per cent of the value of all global stock markets, according to Howard Silverblatt, an analyst who tracks valuations at S&P Dow Jones Indices.
The most important factor behind Apple's ascent is its tight grip on consumers. It launched its first iPhone in January 2007 then the Company was $73.4 billion. Fifteen years later of its inception iPhone continues to be best selling product, recording commendable growth each year. In the year ending in September, iPhone sales soared up to $192 billion.
Sales Soared Even During Pandemic
Even during the pandemic, its sales kept rising; people used Apple devices to work, study and socialise. This provided a safety net for the investors for Apple stock in an increasingly uncertain global economy.
Apple's high sales provided it with a cash stockpile to buy UPS, Starbucks, or Morgan Stanley outright. In September last year company reported $190 million in cash and investment. However, instead of making an acquisition or setting up multiple factories, the company bought its stock. The buybacks reduce the number of total shares available for purchase, making the remaining more valuable as a result, stock prices climb higher.
The company has invested $82 billion in its Research and Development over the past five years. It now employs 38,000 people each year than five years ago. It also became the largest taxpayer in the United States. In April, the company said it had paid $45 billion in taxes over the prior five years.