In Focus

Apple Reaches $1Trillion

Recently, Apple made the history of becoming the first U.S. listed company worth $1 trillion ($1,000,000,000,000.00.).

Recently, Apple made the history of becoming the first U.S. listed company worth $1 trillion ($1,000,000,000,000.00.). With this increase now the price of its single share has crossed $207.0425.
Apple is a massive company with an incredible amount of profits in the last few years such as; it has earned about $48 billion on $229 billion in sales as a profit in 2017.
Tim Cook, CEO of Apple, in a press release, disclosed that the company active installed base of devices reached 1.3 billion in January. The company also showed the massive growth in its hardware such as iPhones and iPads as well as the company’s booming services offerings could fuel to profits for years.
In a statement, Aswath Damodaran, NYU professor, states that "The fact that you have a billion and a half people with Apple devices around the world in a sense gives them a user base that if they can figure out other ways to make money off that user base. I think you could get a bonus on that growth rate."
In another statement, Jessica Rabe, from Datatrek Research, states that "You don’t need a +20x price-earnings multiple to get to $1 trillion valuations, It would be logical, but wrong, to think a huge valuation must stem from a sky-high PE ratio. Apple trades for 17.3 times next year’s consensus estimate, even before you exclude cash. That’s barely above the market multiple of 16.7 times. Apple is an American company that assembles its products in China. It is so successful in each country that it has avoided the fate of many American transnational companies: being a piñata in the global trade/tariff debate. While this political hedge was clearly an accident of history, it works well today."
Source: Yahoo Finance
Apple has set a new example for many of the growing businesses. The journey of Apple starting from a garage to 1 Trillion enterprises has been very inspirational. Apple has proved that the customer is the real king of the market by always keeping their customers first in terms of privacy, and quality products along with keeping pace with the latest technology and innovations.