Ayyyeee… What’s Goodie Everyone. So I got some tea and it involves the technology giant Apple and it’s value.
Apple became the first publicly traded U.S. company to be valued at $2 trillion Wednesday, a major milestone for the company that produces iPhones.
Being valued at $2 trillion highlights how far the company has come since the death of Jobs in 2011. While Jobs was considered a visionary, current CEO Tim Cook, who succeeded Jobs, has managed to increase the value of the company.
Despite a pandemic that crippled global supply chains and harmed consumers, Apple still managed to keep producing and selling products, impressing Wall Street and proving that its business is resilient. Investors are also expecting a boost in sales as Apple customers upgrade to 5G, the latest wireless standard that is expected to be included in the new iPhones.
Apple’s business revolves around the iPhone. And in recent years, sales of the iPhone have leveled off, especially in China, where economic and political turbulence have raised questions about Apple’s future there. But in the most recent quarter, Apple saw sales of iPhones accelerate, due in part to the release of a lower cost iPhone SE.
Last month, Apple announced it did $26 billion in iPhone sales during the most recent quarter, slightly up from the previous year. That was a significant feather in the company’s hat, considering sales of the devices had been steadily slowing. Coupled with lower expectations due to the coronavirus, the news sent Apple’s stock up sharply.
Last week, Epic Games sued Apple for alleged antitrust violations, after Apple removed Epic’s popular Fortnite video game from the Apple App Store. Epic claims Apple’s rule, requiring all companies on its App Store to use Apple’s payment system, constitutes a violation of U.S. law. And Epic says its 30 percent fee Apple charges for all goods and services sold on the platform is exorbitantly high because of the company’s monopoly.
Investors have been looking for Apple to increase the ‘install base,’ or the number of people who own its devices. As more customers are sucked into Apple’s orbit, the company can sell more services, such as iCloud storage or Apple Music subscriptions. And it can sell accessories that tether to the iPhone, such as the Apple Watch.