With a market capitalization of over 950 billion dollars, excellent quarterly results and optimistic outlook, Apple is on track to become the first company to be worth a trillion dollars.
Apple is now one of the most valued companies in the world. In fact, she even runs the race in the lead since these immediate rivals, whether Alphabet (884 billion), Amazon (876 billion) or Microsoft (847 billion), are at some lengths of Cupertino.
The company founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne is in a very good position to become, in the days, weeks or months ahead, the very first company to cross the symbolic heading of the trillion dollars (or thousand billion dollars, i.e. a “1” followed by twelve zeros!) Market capitalization.
Indeed, the latest results of the American company exceeded the expectations of the analysts and are qualified as excellent by the observers.
In the third quarter, Apple saw its turnover increase by 17% over one year, to reach 53.3 billion million. Profits surged by 32% to 11.5 billion million and revenue growth continued to accelerate, for the seventh quarter in a row. The very high-end positioning of the company is therefore not a brake, even if the prices are expensive.
And that’s not all: the short-term future of the Californian group is just as radiant as the projections for the current quarter, which goes from July to September, speak of an estimated increase in turnover between 14 and 18%. This proves to be higher than the expectations of the analyses. Now, it’s at quarter that Apple will show off its new iPhone.
These various factors reinforce the idea that Apple will most likely by the end of the year be the first company to cross the trillion dollar value of valorization.
It will also be noted that most companies occupying the top 10 firms with the highest market capitalization (Alphabet, Facebook, Amazon, Tencent, Microsoft, Alibaba) were founded less than fifty years ago. Facebook is even less than fifteen years old.
At 1 trillion million, Apple remains the largest listed company in the world-a place that it occupies almost continuously since August 2011, when it had delighted this symbolic place with the Exxon oil giant. It is finally not a surprise that it is the first of the modern era to achieve this symbolic figure.
Over the years, Apple has been able to manufacture products that have been the icon for consumers, allowing them to sell their phones, tablets or computers with a very high margin. Because Apple also holds the world record of profits for a listed company, with 20 billion of dollars on the only last quarter of 2017.
The group retains an extraordinary capacity to create ergonomic products or in any case very pleasant to use. Because Apple has never invented anything, neither MP3 players, nor tablets, nor anything at all, “says Tangi le Liboux at Aurel Oro,” but it is the group that better assembles existing technologies, giving birth to products that offer new uses ” .
With few exceptions, the growth of the Apple brand has never waned in recent years. Its turnover was multiplied by three and a half between 2010 and 2017, rising from 65 billion to 229 billion million, and it could reach 261 billion this year.
In ten years, in the smartphone market, the group has for example recorded only one year of decline in sales. In fact, the secret of Apple is to be “become an annuitant group that relies, with strong margins, on services whose vast majority is developed by third parties.
The other secret of the group is to have become an extraordinary cash machine… The company sits on more than 250 billion dollars of cash, which serves as the basis for a massive stock buyback policy. Since 2012, Apple has already made 275 billion to its shareholders, including 200 billion in redemption of shares and it has just launched a new plan of 100 billion. A record where Apple has completed five of the ten largest stock buyback operations in American history. This policy allows it to reduce the number of shares outstanding and thus to mechanically increase the earnings per share, which is a weight support to the increase of the share. A very used practice on Wall Street.
Apple has crossed the 1 trillion bar and won the first stage of the race against the other American and Chinese tech stars. In the future, it will have to prove its ability to withstand competition, especially Chinese and Korean on smartphones. Brian Colello at Morningstar is confident: products and services like Apple Watch, ICloud, HomePod, Airpods, Apple Pay… are not only engines to create additional growth and profits for the company, they also Improved the ecosystem that will allow Apple to continue selling its iphones at higher prices to a loyal clientele. ” Customers and a “pricing power” that allowed the group created by both Steve (Jobs and Wozniak) to print their brand at the American finance Temple.