Apple is Officially a Trillion Dollar Company as Shares Cross $207 Mark

[newyorksole]

The Ifans for want of a better word take great pleasure and personal credit bizarely in Apple's financial successes. It's a safety net of sorts... when ios12 is a bug fest, let's talk about profits and share prices.. when reviews say the s9 has a better camera , let's talk about profits margins.. it's a comfort blanket. Bless them...

Lmaooo wait wait wait a minute.

Your username is “AppleMANIAC”, you’re posting on MACRumors and yet you’re talking down on “iFans”?!

Nah something ain’t adding up! I’m dead.

Anyway... Congrats to Apple. Very proud shareholder and fan of the company. Anyone who owns shares is excited, naturally.

 

[LordVic]

So many armchair people here who don't understand what "market cap" is and how it relates to the stock market, and NOT actually the value of a company.

Congrats Apple at hitting the 1 Trillion market cap. many of us think the way you've done so by catering to the stock market is questionable from a product and moral stand point, but there's no doubt that you managed to be the first to manage it.

 

[PlayUltimate]

Thanks for doing the math on that. I, too, was wondering where this "Apple stock is overvalued" statement was coming from because I was certain that wasn't the case. Now, there are many ways to value a stock and some might be less positive than this one but I doubt any would be negative, even at >$207/share.

For all those saying Apple should make better products and work harder on upgrading the Mac, I agree. I also believe they are doing this if the latest MacBook Pro is any indication. I believe Apple is a aware of the importance of Macs in keeping people in the Apple Garden; they may not have been as focused on this fact as they should have been but I believe they are now. But hey, time will tell. I, personally, am excited about the next year and what we will see on the Mac side.

Beyond the Mac, as an investor and Apple fan I am excited about the Apple Watch, AirPods, Apple TV, the new iPads, and, yes, even the new iPhones. Plus, as a video content creator I am pleased to see Apple spending money in the TV content area as that helps my sector and job prospects.

So Apple hitting $1 Trillion valuation may be as meaningful as a total solar eclipse but both are pretty cool to see.

Compare P/E ratios and AAPL is even better deal; albeit AAPL is considered large cap vs growth at this point:
AAPL 18.76
GOOG 53.07
AMZN 144.59

Also, of the three, only AAPL pays a dividend.

 

[jonnyb098]

Now that they have more money than GOD, how about focusing on Macs and not just iOS devices?

How do you think they got here? Not by focusing on Macs. Don’t hold your breath.

 

[BruceEBonus]

No other company could do it with what they’re offering. Nothing new. Old kit resized. Features removed. Massive prices. Yet they keep increasing in value. It doesn’t make sense. It shouldn’t really happen. But it does. No matter how much you don’t like Apple you’ve got to admire how they buck market logic.

Like Monty Python’s Holy Grail Sorceror - Tim really is The Enchanter.

 

[TheTruth101]

Yeap, by using cheap components. My iPhoneX battery is already running out after an hour.

 

[pakupakuman]

I don't think the population of the MacRumors' forums comes anywhere close to being 1% of the population worldwide.

That's not the 1% the post was referring to.

 

[LordVic]

can someone explain to me why this is something to celebrate? how is this good for us, consumers?

Since I'm not sure i've seen a real good answer, and because I think my post here can help other's understand what this means;


This thread is talking about Apple's "Market Cap". Market Cap is the total value if all shares of the company if added together. So, if you were as a hypothetical going to buy 100% of Apple today, by buying every single share, you would be looking at a total of 1Trillion+

This is very interesting number because that's all it means, and it's variable based upon the whims of stock trading. which means it's based on future perceived value and speculation of future performance, and is not directly tied to the companies current day assets/liability.

How it relates to the customer is a mixed bag. Ultimately, in a healthy company, it doesn't have any impact on the customer. However, companies can "cater" to the stock price by pumping up margins and making the company appear to be greater profitability by affecting their current quality and parts. Many on MacRumours (And if you listen to financial business news) would believe Apple have achieved this by cutting costs and pumping up prices to improve margins that has a direct impact on quality of the products.

how much meaning ultimately does market cap have? very little.

 

[bensisko]

1) Apple cares little about marketshare. . . it is about keeping their business going. There are many companies that have little marketshare and do just fine. And there are others that have a large marketshare and are struggling.

Exactly! This has been true since Jobs came back, and I find it odd that people still don’t get it.

 

[LordVic]

More cash for R&D, pay off any legal debts such as paying 2/3rds of the Irish tax bill, etc.

I’m happy stock keeps rising

unfortunately this has little to do with that. unless Apple were to sell their own stock to bring in cash. Which they are doing the opposite (they've been in buy-back mode for a while)

Stock that already exists in the exchanges doesn't directly benefit Apple as these are sold 3rd party. ultimately, hitting 1 trillion in market cap has zero impact on Apple's operation. Other than the buyback is going to cost more.

 

[FtrV8]

Wonder what Ron Wayne thinks for this.

 

[Ramchi]

Stop buying Apple products, save money by buying Android and Windows, then use the saved money by investing in Apple stock. Win win for everyone!

 

[macintoshmac]

My iPhone has 256 gb of storage

That is the top model. 128GB should have been standard since iPhone 7 at least. But that is the iPhone, there can be arguments that it is okay.

But they really could do 128GB, 256GB, 512GB on the iPads and 512GB standard on the MacBooks at least. But no.

This is what I was alluding to, that they should commemorate their trillion dollar status with some tangible benefit for the consumers, considering the consumers are still quite loyal to them, despite their attempts to price out their customers.

 

[Allyance]

I am an Apple stock holder, and it has done wonders for my IRA. Certainly not in the 1% bracket!

 

[jarman92]

...think they’ll increase iCloud storage now?

 

[Wash08]

Apple has officially become the world's only trillion dollar publicly traded company, in terms of market capitalization, which is simply the company's number of outstanding shares multiplied by its stock price.

Apple achieved this milestone by hitting a stock price of $207.05 and above in intraday trading today, giving it a market cap slightly over $1,000,000,000,000, based on its 4,829,926,000 outstanding shares as of July 20, 2018, which the company disclosed in its quarterly 10-Q filing with the SEC on Wednesday.

While some publications declared Apple a trillion dollar company earlier in the day, this was based on an outdated number of outstanding shares in Apple from tools such as Yahoo Finance, which powers Apple's own Stocks app.

Apple beat out other large tech companies, including Amazon, Microsoft, and Google parent company Alphabet, in the race to a trillion dollars. As with most milestones of this nature, however, Apple reaching exactly a trillion dollar market cap doesn't have too much significance, beyond the vanity of it.

Apple's stock has appreciated over eight percent since the market closed on Tuesday, following its record-breaking earnings results. Apple set a new fiscal third quarter record with $53.3 billion revenue, easily topping Wall Street expectations, and there were also indications that the iPhone X is selling quite well.

The milestone is a testament to the strength of Apple, which has already been the world's most valuable company for several years. Aside from 2016, which is now an outlier, Apple has been steadily increasing its revenue and profits since 2003, fueled by the massive popularity of products like the iPhone and iPad.

Apple will look to build upon its success with a wide range of new products expected later this year, including a trio of iPhones, iPads with Face ID, Apple Watch Series 4 models, updates to several Macs, new AirPods, and much more.

Update: Apple's stock price has since dipped below $207 as it continues to fluctuate on the intraday market.

Article Link: Apple is Officially a Trillion Dollar Company as Shares Cross $207 Mark

Apple is doomed!!!! Going out of business since 1976

 

[SeattleMoose]

I don't agree with everything Apple does. Neither do most of you. But you've got to admit they deserve their success. Apple made their fortune the old fashioned way. They made stuff and we the consumers had the choice to buy it, or not. Their success is a testament to their products over the last ~40 years. Apple, you deserve every penny!!!

 

[JungeQuex]

Okay, to commemorate, maybe we will see the company not scrimping on storage space for the iPhones and any other Mac hardware going forward. The least they could do.

How is 64GB base storage “scrimping?”

 

[seanmcbay]

can someone explain to me why this is something to celebrate? how is this good for us, consumers?

It isn’t anything good. It’s scary. I love Apple’s products but a company shouldn’t have this much power.

 

[PlayUltimate]

How is 64GB base storage “scrimping?”

It is less than I want.

 

[DakotaGuy]

And yet, they nickel and dime us every step of the way...

Just think how much more marketshare they could have if the products were more affordable. With each generation of whatever product, it gets more expensive.

I guess greed has no boundaries.

Profit > market share for a corporation. Making the products more affordable would likely have a negative impact on the luxury image of the brand. If anything Apple should gradually extend prices higher at the top end for the latest and greatest products. They can offer older outdated stuff at discounted prices if they feel it's necessary to offer products to lower socioeconomic groups, however it's probably not in their best interest from a profit standpoint. It's better to let the generic Chinese companies have those customers and focus on the "have's" and not "have not's" because the "have's" are the people that will fork over top dollar for a new product.

 

[macintoshmac]

How is 64GB base storage “scrimping?”

I said going forward. I am hoping against hope that we see 128GB starting capacity and 256GB as next, that's it, for iPhones.

 

[Bin Cook]

Tim Cook's mission has been accomplished. It's time for a change.

Preach. Apple is now a grim and greedy monolith completely alien to the Jobs and Forstall era from 1997.

Just waiting for the next article that either shows where Tim will nickel and dime us or which products have had 20% slapped on the price because he wants to wipe his arse with five $100 bills instead of four.

 

[jblagden]

It is good, because it means more Apple products for the world. People don't understand why this is a good thing, everybody does win in the end. People can wish ill on Apple all they want, and realize that if they go out of business, we wouldn't have anymore Apple products. Whats wrong with supporting a company that makes products you want to stick around and enjoy using? Remember Apple has to make money in order to keep making the products we love.

The "we" keeps changing. There might be more people in that group now, but some have been pushed out by changes in the hardware and software.
[doublepost=1533233639][/doublepost]

I said going forward. I am hoping against hope that we see 128GB starting capacity and 256GB as next, that's it, for iPhones.

Or better yet, either an SD card slot or more reasonable upgrade pricing.

 

[Duane Martin]

No other company could do it with what they’re offering. Nothing new. Old kit resized. Features removed. Massive prices. Yet they keep increasing in value. It doesn’t make sense.

No, it doesn't make sense if what you say is true so maybe you should be open to the possibility that your appraisal is just plain wrong. Apple has lots of "new" as evidenced by the dramatic rise in services and wearables. Thunderbolt 3 has changed how pros can work as evidenced by the number of USB Type C an Thunderbolt 3 products available or announced at NAB this year (my 2016 MacBook Pro can connect to more devices than any computer I have ever owned, allowing me to choose what I need, not what my computer is limited to by legacy ports). And the iPhone X, love it or hate it, has shown that people will pay a premium for an exceptional product.

Apple continues to ignore the low end of markets where there are no profits to be made and focuses on the mid-range to high end where Apple is, in fact, competitive on price and superior on experience. Check out the current iPads, which are giving the competition nightmares trying to produce a comparable product at a competitive price. Having owned Apple products since my first Apple ][e I haven't seen much change in price. The original base price of Apple ][ was $1298USD, mine cost more than $2.3k (Canadian dollars from here on); my Blue and White G3 tower more than $3k; my Wallstreet G3 laptop $5k. I remember in the early 90's wanting a Mac IIfx but not being able to come up with the >$10k the fastest Mac (at the time) was going to cost. That range pretty much matches prices now.

So consider that Apple has, in fact, introduced new products, products with more real features, and the prices have not changed and remain competitive if not better than their real competition. Now does it make sense?