What started as 3 friends building circuits out of their parents garage has become the first US company to reach a trillion dollar valuation.
A Trillion Dollar Apple
On August 2nd, at 2:25pm Apple surged 2.92% on a strong earnings report to become the first US publicly traded company to reach a 1 trillion dollar valuation. Somewhat surprisingly, Apple managed to hold, and continues to hold, this valuation; successfully bucking the trend of reaching a milestone then quickly pulling back from it.
After such a strong quarter Apple continues to project significant future growth. Below are their Q3 projections
- revenue between $60 billion and $62 billion
- gross margin between 38 percent and 38.5 percent
- operating expenses between $7.95 billion and $8.05 billion
- other income/(expense) of $300 million
- tax rate of approximately 15 percent before discrete items
More information can be found here
Apple seemingly unfazed by this new milestone shows no signs of slowing down either. With increased competition on their mobile device business (Huawei recently overtook Apple in market share) Apple is shifting their focus to service and subscription based products. Products which brought Apple 9.55 billion in revenue for the second quarter, a number which will only keep growing. Apple has multiple services currently in the works such as a streaming service which would create original content, (great ANOTHER streaming service), their recent acquisition of digital magazine service “Texture” indicates a further venture into news and other content industries. It’s come to the point where if it exists Apple is probably looking for a way to charge you $10.00 a month for it. It’s this adaptability of Apple and their ability to revolutionize industries and products that’s earned them this trillion dollar valuation. Guess that’s what you get for thinking different. See you at 5 trillion.