Apple and the rise of the trillion-dollar firm

“Apple’s gravity-defying exploit in becoming the world’s first trillion-dollar company is no small feat,” Dante Disparte writes for Forbes. “It is very likely the next firms to join the trillion-dollar club will all benefit from similar strategies, elements and market forces as Apple, but they will likely make this trillion-dollar mark in less time. In addition to leveraging technology, defining new markets and capturing network effects, the trillion-dollar club will exploit one critical market force, which is the concept of compression. Or, defined more elegantly, the notion of creators and accelerators, where the latter are leaders who create industries and new markets and the former the leaders who transform them and at speed with technology at the core.”

“In the same way that Henry Ford created the modern automotive industry, someone like Elon Musk, notwithstanding his erratic behavior or perhaps because of it, is likely to accelerate the automotive industry,” Disparte writes. “The concept of compression is shown in the fact that it took Ford more than 100 years to reach the market cap that Tesla achieved in 14.”

Disparte writes, “In Apple’s case this compression effect, a hyper-accelerated version of digital transformation, took 42 years to achieve this record-breaking valuation, much of it achieved in the decade since the iPhone was launched. The next likely firms to follow Apple in this feat, either Amazon, Alphabet, Google’s parent company, or Facebook, provided it can overcome its monthly active user curse, will likely break the trillion-dollar mark in much less time.”

Read more in the full article here.

MacDailyNews Take:

Financial returns are simply the result of Apple’s innovation, putting our products and customers first, and always staying true to our values. – Tim Cook

Being the richest man in the cemetery doesn’t matter to me… Going to bed at night saying we’ve done something wonderful… that’s what matters to me. – Steve Jobs

SEE ALSO:
Tim Cook’s message to Apple employees about hitting landmark $1 trillion valuation – August 3, 2018

5 Comments

  1. Ford was profitable almost from Day 1. Elon Musk has the advantage of becoming a billionaire leading a company that may never be profitable, as long as the suckers are willing to bid the stock ever higher the bigger the losses are. And for what purpose – so we can all help save the planet by converting from the evil gasoline to coal powered cars. Brilliant. I would take Henry Ford any day.

    1. Ford was not even close to profitable “from day 1”. His first automobile attempt, the Detroit Automobile Company, failed due largely to Ford’s inability to overcome technical problems and produce more than 1 car at a time. It took several years of unprofitable but instructive racing plus a visit to the Chicago slaughter houses for him to overcome his limitations. Creditors were with him all the way.
      http://hfha.org/the-ford-story/the-birth-of-ford-motor-company/

      In addition to being born to a relatively wealthy family (Ford’s father gifted Henry an 80 acre farm as a wedding present), Ford also networked with “big government”. The mayor of Detroit introduced Ford to private capitalists which dumped all the money Ford needed to take his quadricycle to the next level.

      You seem to begrudge small investors for doing the same with Tesla. Funny how nobody bitches about corporate welfare and special tax cuts when the graft benefits themselves.

  2. i’m really beginning to abhor that vain, egocentric and boastful ‘true to our values’ drivel. i hear it everywhere. i don’t care about your rhetoric. i, solomé, hereby, condemn the rhetoric, i condemn the drivel cuz we here in soloméville, we will always remain true to our own freakin values.

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