Udayavni Special

Apple becomes first US company to reach 2 trillion market value


PTI, Aug 20, 2020, 8:54 AM IST

Berkeley: Apple has become the first US company to boast a market value of USD 2 trillion as technology continues to reshape a world where smartphones are like appendages and digital services are like instruments orchestrating people’s lives.

The iPhone maker reached the USD 2 trillion milestones in Wednesday’s early stock market trading when its shares surpassed USD 467.77.

The stock later backtracked, but it didn’t diminish a remarkable achievement that came just two years after Apple became the first US company with a USD 1 trillion market value. It comes amid a devastating pandemic that has shoved the economy into a deep recession and caused unemployment rates to soar to the worst levels since the Great Depression nearly a century ago.

But Apple and other well-established tech giants such as Microsoft, Google, Amazon, Facebook, and Netflix have thrived during the upheaval as the pandemic has forced millions of people to work, attend classes, shop, and entertain themselves at home.

That, in turn, has made the technology even more crucial, a factor that has caused investors to snap up the stocks of the industry’s biggest players, as well as relative newcomers, such as video conferencing service Zoom, which has seen its shares quadruple so far this year.

Apple’s stock has climbed by nearly 60% this year. In recent weeks, the rally has been bolstered by excitement over a four-for-one stock split that Apple announced late last month in an effort to make its shares more affordable to a wider swath of investors.

The broader boom in tech stocks also has helped the benchmark S&P 500 index reach new highs after steep declines earlier in the year. Apple, Microsoft, Amazon, Facebook, and Google’s parent company, Alphabet account for nearly 23% of the S&P 500’s entire value.

Apple isn’t the first company in the world to reach a market value of USD 2 trillion. That honor belongs to energy producer Saudi Aramco, which attained it in December 2019. Saudi Aramco now trails Apple with a market value of about USD 1.8 trillion.

Now that technology has clearly become the oil of the 21st century, other industry leaders could soon be joining Apple in the USD 2 trillion clubs, now that it is clear technology has become the oil of the 21st century. Many industry analysts are predicting Amazon, Microsoft and Alphabet could eclipse the milestone in the upcoming months too.

But regulators and lawmakers looking into allegations that Apple, Amazon, Google, and Facebook have been illegally abusing their power to stifle competition could spook investors if their investigations result in moves that undercut the companies’ profits.

Not all technology companies are doing as well as they were before the pandemic. Google, for instance, suffered the first quarterly revenue decline from the previous year in its history during the April-June period as the advertising sales that generate most of its profit tapered off amid pandemic-driven lockdowns across the U.S.

But Apple has fared extraordinarily well, buoyed by the timely April debut of a new iPhone model priced at about USD 400, 40% to 60% less than the fancier devices that it released last fall.

The company will face another litmus test in October when it is expected to unveil a line-up of new iPhones, including a model capable of connection on the next generation of ultrafast wireless networks known as 5G.

The next wave of high-priced iPhones, coming out a few weeks later than usual because of production delays caused by the pandemic, is expected to test the depths of Apple’s customer loyalty as well how many people are willing to spend during tough times for most people outside the technology industry.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Kerala woman in Israel killed in rocket attack by Palestinian militants from Gaza

Karnataka govt warns Cipla and Jubilant of legal action for not supplying Remdesivir

Covid-19: Patients can now walk into BBMP triage centres, get bed allocated

Congress doing politics of deceit in times of pandemic: BJP

India conducting 18-20 lakh COVID tests a day: ICMR

HC raps JNU for apathy towards students, faculty requests for COVID care facilities on campus

Chhota Rajan returns to Tihar after recovering from COVID



Related Articles More

Microfinance sector seeks RBI’s additional support to combat COVID-19 second wave

Flipkart to add 8 lakh sq ft warehousing space to strengthen grocery infrastructure

Sensex tanks over 450 pts in early trade; Nifty slips below 14,800

Sebi comes out with new proposal for segregation, monitoring of collateral at client level

Snapdeal launches Sanjeevani app to connect COVID patients with potential plasma donors

MUST WATCH

Udupi Shiroor mutt successor | Aniruddha Saralatthaya,

Falcon Club​ provide free Ambulance​ service to Covid​ infected

Local off-roader team pulls up pickup vehicle that toppled in the middle of the road

People didn’t take vaccine when we asked them to

Udayavani 11 -May -2021 News Bulletin

Latest Additions

Kerala woman in Israel killed in rocket attack by Palestinian militants from Gaza

Karnataka govt warns Cipla and Jubilant of legal action for not supplying Remdesivir

‘Suspended Mumbai cop Sachin Waze dismissed from police service’

Indian Naval Ships Kochi and Tabar reach New Mangalore Port with oxygen & critical medical supplies

Microfinance sector seeks RBI’s additional support to combat COVID-19 second wave

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.