Apple has become the first American company to reach a market cap of $ 2 trillion. It’s a random milestone, but an important one at the same time, a testament to the iPhone maker’s pandemic-defying performance. It’s also just two years ago that Apple hit a $ 1 trillion market cap, which means the company has doubled in value in just over 24 months.
Apple is not the first company in the world to hit the $ 2 trillion benchmark. Saudi Aramco, the gas and oil giant headquartered in Saudi Arabia, did so first. Aramco cut the $ 2 trillion mark in December 2019, but has since fallen below that figure as its share price rises. Apple passed it as the most valuable company in the world on August 4, 2020.
Today, shares in the company crossed the $ 467.77 mark that Apple gives the $ 2 trillion valuation, as reported by the Financial Times. But they may dip well in the future.
Shares in Apple have been on a tear for years, but they performed exceptionally well in 2020, winning by more than 50 percent, despite the annoyance caused by COVID-19. The company’s stock has gained an average of 3.5 percent since the beginning of June each week, reports The Wall Street Journal. And its share price jumped significantly to its most recent earnings report in July, where the company reported record sales and a total of $ 59.7 billion in revenue – up 11 percent compared to the same quarter last year.
But while revenue is booming, Apple is facing a string of regulatory headwinds regarding the ecosystem of apps that underpin its hardware. Most notable here is the legal challenge from Fortnite creator Epic Games, which Apple is currently suing for trampling Fortnite off iOS after Epic tried to overhaul Apple’s payment systems. Part of Epic’s complaint (and one repeated by many other companies reaching customers through Apple’s App Store) is that the company’s 30 percent cut on transactions is extortionate.
Along with Apple’s growing revenue from its services and its reported plans to launch several subscription bundles later this year, this shows how the future of the iPhone maker depends not only on its hardware, but on the software that’s it. t keep customers loyal. The iPhone cost Apple up to $ 1 trillion. Services probably got it $ 2 trillion. What can it hold there?
