Apple becomes the world’s first trillion dollar company

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Apple chief executive officer Steve Jobs stands in front of a photo of himself, right, and Steve Wozniak, left,  during an Apple event in San Francisco in 2011. The firm today became the first in history to be valued at a trillion dollars


Apple has become the world’s first publicly traded company to be valued at $1 trillion – 42 years after Steve Jobs and Steve Wozniak began the firm in a Silicon Valley garage.

The stock rose nearly 3 percent following a strong third-quarter earnings report earlier this week, briefly hitting a session high of $207.05 in midday trading before falling back below $207. 

This briefly pushed Apple over the historic trillion dollar mark.  

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Apple chief executive officer Steve Jobs stands in front of a photo of himself, right, and Steve Wozniak, left,  during an Apple event in San Francisco in 2011. The firm today became the first in history to be valued at a trillion dollars

Apple chief executive officer Steve Jobs stands in front of a photo of himself, right, and Steve Wozniak, left, during an Apple event in San Francisco in 2011. The firm today became the first in history to be valued at a trillion dollars

HOW BIG IS APPLE? 

Apple’s stock market value is greater than the combined capitalization of Exxon Mobil, Procter & Gamble and AT&T. 

It now accounts for 4 percent of the S&P 500.

The Silicon Valley stalwart’s stock has surged more than 50,000 percent since its 1980 initial public offering, dwarfing the S&P 500’s approximately 2,000-percent increase during the same almost four decades. 

The valuation caused confusion earlier in the day as the number of shares were adjusted as part of a buyback, prompting Apple’s own Stock app among others to tell users the firm had crossed the threshold before it had.

However, based on the new adjusted outstanding share count of 4,829,926,000 shares, a stock price of $207.05 was enough to put Apple over the finish line in the race to one trillion.

The milestone marks the financial fruit of stylish technology that has redefined society since two mavericks named Steve started the company 42 years ago.

The peak reached Thursday seemed unimaginable in 1997 when Apple teetered on the edge of bankruptcy, with its stock trading for less than $1.

To survive, Apple brought back its once-exiled co-founder, Steve Jobs, as interim CEO and turned to its arch-rival Microsoft for a $150 million cash infusion to help pay its bills. 

Jobs eventually introduced popular products such as the iPod and iPhone that have driven Apple’s rise. 

Apple shares rose 2.7 percent to an all-time high of $207.05 around midday. 

They’re up 22 percent so far this year.

The tech company’s stock jumped 2.8 percent to as high as $207.05, bringing its gain to about 9 percent since Tuesday when it reported June-quarter results above expectations and said it bought back $20 billion of its own shares. 

US technology analyst Dan Ives said: ‘I think it just speaks to just how powerful the Apple ecosystem has become over the last few decades.

‘I view this as just kind of speaking to a new stage of growth and profitability.’ 

The moment Apple hit a trillion: The stock rose nearly 3 percent following a strong third-quarter earnings report earlier this week, briefly hitting a session high of $207.05 in midday trading before falling back below $207.

The moment Apple hit a trillion: The stock rose nearly 3 percent following a strong third-quarter earnings report earlier this week, briefly hitting a session high of $207.05 in midday trading before falling back below $207.

The moment Apple hit a trillion: The stock rose nearly 3 percent following a strong third-quarter earnings report earlier this week, briefly hitting a session high of $207.05 in midday trading before falling back below $207.

Apple’s stock has been on a tear over the past several years, pushing its valuation higher in the process. Key product releases, such as the iPhone and Apple Watch, helped catapult shares

Started in the garage of co-founder Steve Jobs in 1976, Apple has pushed its revenue beyond the economic outputs of Portugal, New Zealand and other countries. 

Along the way, it has changed how consumers connect with one another and how businesses conduct daily commerce.

The Silicon Valley stalwart’s stock has surged more than 50,000 percent since its 1980 initial public offering, dwarfing the S&P 500’s approximately 2,000-percent increase during the same almost four decades. 

During that time, Apple evolved from selling Mac personal computers to becoming an architect of the mobile revolution with a cult-like following. 

Mr Jobs eventually introduced such popular products as the iPod and iPhone that have driven Apple’s rise.

The stock has been surging this week as anticipation mounts about the next generation of iPhone, expected to be released in September. 

In this April 24, 1984 file photo, Steve Jobs, left, chairman of Apple Computers, John Sculley, center, president and CEO, and Steve Wozniak, co-founder of Apple, unveil the new Apple IIc computer in San Francisco, Calif. Apple could become the world's first company to be valued at $1 trillion, the financial fruit of tasteful technology that has redefined society since two mavericks named Steve started the company 42 years ago.

In this April 24, 1984 file photo, Steve Jobs, left, chairman of Apple Computers, John Sculley, center, president and CEO, and Steve Wozniak, co-founder of Apple, unveil the new Apple IIc computer in San Francisco, Calif. Apple could become the world's first company to be valued at $1 trillion, the financial fruit of tasteful technology that has redefined society since two mavericks named Steve started the company 42 years ago.

In this April 24, 1984 file photo, Steve Jobs, left, chairman of Apple Computers, John Sculley, center, president and CEO, and Steve Wozniak, co-founder of Apple, unveil the new Apple IIc computer in San Francisco, Calif. Apple could become the world’s first company to be valued at $1 trillion, the financial fruit of tasteful technology that has redefined society since two mavericks named Steve started the company 42 years ago.

In 1998 Jobs lured a soft-spoken Southerner Tim Cook ¿ the current Apple chief executive ¿ away from Compaq Computer at a time when Apple¿s survival remained in doubt.

In 1998 Jobs lured a soft-spoken Southerner Tim Cook ¿ the current Apple chief executive ¿ away from Compaq Computer at a time when Apple¿s survival remained in doubt.

In 1998 Jobs lured a soft-spoken Southerner Tim Cook – the current Apple chief executive – away from Compaq Computer at a time when Apple’s survival remained in doubt.

Mr Jobs’s vision, showmanship and sense of style propelled Apple’s comeback but it might not have happened if he had not evolved into a more mature leader after his exit from the company in 1985.

His ignominious departure came after losing a power struggle with John Sculley, a former Pepsico executive who he recruited to become Apple’s CEO in 1983 — seven years after he and his geeky friend Steve Wozniak teamed up to start the company with the administrative help of Ronald Wayne.

Mr Jobs remained mercurial when he returned to Apple but he had also become more thoughtful and adept at spotting talent that would help him create a revolutionary innovation factory.

Jobs, who died in 2011, was succeeded as chief executive by Tim Cook, who has doubled the company’s profits but struggled to develop a new product to replicate the society-altering success of the iPhone, which has seen sales taper off in recent years.

In 2006, the year before the iPhone launch, Apple generated less than $20 billion in sales and net profit just shy of $2 billion. 

Steve Jobs holding an iMac computer, the machine largely credited with the rutnaround of the firm following steve Jobs return

Steve Jobs holding an iMac computer, the machine largely credited with the rutnaround of the firm following steve Jobs return

Right, Portrait of Apple co-founder Steve Jobs posing with an Apple II computer., and left, Steve Jobs holding an iMac computer, the machine largely credited with the turnaround of the firm following Steve Jobs return

By last year, its sales had grown more than 11-fold to $229 billion – the fourth highest in the S&amP 500 – and net income had mushroomed at twice that rate to $48.4 billion, making it the most profitable publicly-listed U.S. company.

One of five U.S. companies since the 1980s to take a turn as Wall Street’s largest company by market capitalization, Apple could lose its lead to the likes of Alphabet Inc or Amazon.com Inc if it does not find a major new product or service as demand for smartphones loses steam.

One of his biggest coups came in 1998 when he lured a soft-spoken Southerner, Tim Cook – the current Apple chief executive – away from Compaq Computer at a time when Apple’s survival remained in doubt.

THE TRILLION DOLLAR RISE OF APPLE 

The company's journey to the summit of the technology industry has been a rocky one, having seen Jobs (pictured right in 1976) leave the firm in the mid-1980s after his pet project, the first Macintosh computer, struggled and he attempted to oust then chief executive John Sculley. Wozniak is pictured left  

The company's journey to the summit of the technology industry has been a rocky one, having seen Jobs (pictured right in 1976) leave the firm in the mid-1980s after his pet project, the first Macintosh computer, struggled and he attempted to oust then chief executive John Sculley. Wozniak is pictured left  

The company’s journey to the summit of the technology industry has been a rocky one, having seen Jobs (pictured right in 1976) leave the firm in the mid-1980s after his pet project, the first Macintosh computer, struggled and he attempted to oust then chief executive John Sculley. Wozniak is pictured left  

1976: Founders Steve Jobs, Steve Wozniak and Ronald Wayne created the company on April 1 1976 as they set about selling computer kits to hobbyists, each of which was built by Wozniak.

The first product was the Apple I. 

1977: Apple released the Apple II in June, which was the first PC made for the mass market. 

1981: Jobs became chairman.  

1984: The Macintosh was introduced during an ad break for the Super Bowl and later officially unveiled during a launch event. It was discontinued a year later and Jobs left the firm.

1987: Apple released the Macintosh II, the first colour Mac.

1997: Apple announces it will acquire NeXT software in a $400 million deal that involves Jobs returning to Apple as interim CEO. He officially took the role in 2000.  

2001: Apple introduced iTunes, OS X and the first-generation iPod.

The first iPod MP3 music player was released on October 23, 2001, at an event in Cupertino and was able to hold up to 1,000 songs.

Steve Jobs unveils Apple Computer Corporation's new Macintosh February 6, 1984 in California.

Steve Jobs unveils Apple Computer Corporation's new Macintosh February 6, 1984 in California.

Steve Jobs unveils Apple Computer Corporation’s new Macintosh February 6, 1984 in California.

The then Chief Executive Officer of Apple, Steve Jobs, with the iPhone

The then Chief Executive Officer of Apple, Steve Jobs, with the iPhone

The then Chief Executive Officer of Apple, Steve Jobs, with the iPhone

2007: Apple unveils the iPhone. 

2010: The first iPad was unveiled.

2011: Jobs resigned in 2011 due to illness, handing the CEO title to Tim Cook. Job died in October from pancreatic cancer.

2014: Apple unveiled the Apple Watch. It also unveiled its first larger iPhones – the 6 and 6 Plus. 

2015: After purchasing Beats from Dr Dre, Apple launched Apple Music to compete with Spotify and other music streaming services. 

Apple CEO Steve Jobs speaks at an Apple event at Apple headquarters in Cupertino, Calif.

Apple CEO Steve Jobs speaks at an Apple event at Apple headquarters in Cupertino, Calif.

Apple CEO Steve Jobs speaks at an Apple event at Apple headquarters in Cupertino, Calif.

2016: Apple returned to its roots and announced the 4-inch iPhone SE. Meanwhile, the firm is embroiled in a legal battle with the FBI, involving the agency demanding access to the locked phone used by Syed Farook, who died in a shootout after carrying out a deadly December attack in San Bernardino, California with his wife. The court order was dropped on March 28 after the FBI said a third party was able to unlock the device.  

2017: Apple introduces the iPhone X, which removes the home button to make way for a futuristic edge-to-edge screen design and a new FaceID system that uses advanced sensors and lasers to unlock phones with just the owner’s face.    

2018: In a first for the company, Apple introduces new features in its latest operating system, iOS 12, that encourage users to manage and spend less time on their devices. The move was spawned by a strongly worded letter from shareholders that urged the firm to address the growing problem of smartphone addiction among kids and teenagers. 

 





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