Apple created history by becoming the first U.S. based company to cross the $2 trillion capitalization mark. Apple reached this milestone after Saudi Aramco, a multinational based in Saudi Arabia.
Saudi Aramco achieved this milestone on its second day of trading in December. The company held the biggest IPO in history and raised $25.6 billion in shares. Apple achieved the valuation after its shares climbed to $468.65 during midday trading. If equated in terms of GDP, this makes Apple the 8th largest nation, higher than Italy, Brazil, Spain, Canada, and more. The fresh rise of Apple stocks despite the economic slowdown shows growing confidence by investors in the company.
After taking 42 years for the tech giant to reach the $1 trillion value, this historical milestone took just an additional 2 years. All of the second $2 trillion came in the past 21 weeks. This valuation has also come just before Apple is set to launch its highly awaited iPhone with 5G technology.
A lot of factors have contributed to this meteoric rise of the tech giant. While the iPhone played a big role in achieving the $1 trillion valuation, it isn’t the only reason Apple reached this momentous milestone.
Various products and services belonging to Apple played their part in this $2 trillion journey. The company also seems to be diversifying and focusing on games and music. Services like App Store, Apple Music, and Apple Care have contributed to doubling revenues in the last four years. Revenues are expected to cross $45 billion. The Services business adds up to almost 22% of total sales.
Wearables and hearables from the company are expected to see solid demand with products like Airpods and the Apple Watch. The company is also expected to add products like over-ear headphones, new iPads, and cheaper smart speakers. Moreover, Apple Watch continues to dominate the market in the smart watch arena. With smart watches being bought to monitor health and fitness even during the lockdown, the Apple Watch is still a bestseller. Another business that is one of the fastest-growing segments of the company is the AirPods. According to estimates, Apple may sell more than 100 million AirPods by the end of the coming year.
Apple has over 550 million paid subscriptions on its platform. This is across all services provided by the tech giant. Apple Music alone has more than 68 million subscribers. Moreover, Apple has added 130 million paid subscriptions in the last one year itself. The company has also stated that it expects the number of subscriptions to reach the 600 million mark by the end of this year.
The iPad has also shown substantial revenue as compared to earlier. The iPad showed revenue up by 31% as compared to last year. During an investors’ call in July, Apple also revealed that the revenue from its Mac devices has increased in the last year. The company, in its quarterly earnings call, also stated that the active installed base for the Mac and iPad reached an all-time high.
While Apple is at an all-time high right now, it is largely because its products are relevant now more than ever. The ecosystem of products and services built by the giant is an essential reason behind its success.