Apple is first public company worth $1 trillion

Friday, 03 Aug, 2018

Apple is the first private sector company to reach this level.

The company, which was started in a garage in Palo Alto by Steve Jobs and Steve Wozniak in 1976, has transformed the way people communicate with its ubiquitous iPhone.

But no matter what your view of the company and its products, Apple devices have changed the world - and today made financial history as well.

In the firm's posted financial results for the fiscal 2018 third quarter, Apple revealed a 17% increased quarterly revenue from previous year of $53.3 billion and 40% higher quarterly earnings per diluted share of $2.34.

Hot on Apple's heels is, the second-largest listed US company by market value, at around $880 billion, closely followed by Google-owner Alphabet and by Microsoft. Apple's stock market value is greater than the combined capitalization of Exxon Mobil, Procter & Gamble and AT&T. The company estimated a healthy revenue stream of between $60 billion and $62 billion with low operating costs of just $7.95 billion to $8.05 billion.

One of three founders, Jobs was driven out of Apple in the mid-1980s, only to return a decade later and rescue the computer company from near bankruptcy.

Jobs often presented almost the entirety of Apple's launch events, while Cook typically emcees, but hands product announcements to lieutenants like marketing head Phil Schiller, software chief Craig Federighi, and services lead Eddy Cue. It makes more money and pays its owners - the shareholders - more than any other public enterprise on the planet.

During that time, Apple evolved from selling Mac personal computers to becoming an architect of the mobile revolution with a cult-like following. "It's one of those things that does not mean anything by itself... it's more a testimony of the importance of Apple on the market".

On Tuesday, Apple reported that net profit jumped more than 30 per cent to $11.5 billion. If you go back as far as the inception of the company in in 1980 the shares have grown by over 2000%. The company faced a backlash when it replaced Google Maps on the iPhone with a buggy and unreliable Apple Maps app in 2012. But when Apple bought NeXT in 1997, the company Jobs worked on in his absence from Apple, he returned to the company he co-founded and helped it restructure.

October 2011: Jobs, 56, dies after battling pancreatic cancer, having turned over command of Apple to Tim Cook earlier in the year. It also announced that it had used some of its huge pile of cash to buy back shares worth billions.

They recently posted their Q2 results and they managed to achieve their highest ever quarterly profit and analysts think they will be joining Apple soon- in the event that there is no catatsrophe in their camp in the short term of course.