“Apple Inc. shares traded at a $1 trillion market value Wednesday after the tech giant posted stronger-than-expected second quarter earnings as record services revenue offset a worryings slump in iPhone sales,” Martin Baccardax reports for The Street.
“Apple was able to offset a record decline in iPhone revenues, which fell 17% to $31.05 billion, with the best growth in services revenue the company has ever booked and a near-term forecast that topped analysts forecasts and remains on track for the group’s stated aim of doubling the size the services business from 2016 levels to around 500 million paid subscribers by 2020,” Baccardax reports. “Revenue from unites such as Apple Pay, iTunes, and Apple Music rose 16% to a record $11.45 billion, Apple said, with a reported gross margin of 64%, nearly twice the level of the group’s third quarter forecast for the entire business.”
“Apple shares were marked 6% higher at the start of trading Wednesday to change hands at $212.82 each,” Baccardax reports, “the highest since November 2 and a move that extends the stock’s gain since Cook cautioned on a China-lead slowdown on January 3 to around 49.7% and value the Cupertino, California-based tech giant at just over $1 trillion.”
Read more in the full article here.
MacDailyNews Take: Apple’s market cap currently stands at $1.013 trillion.
Recent members of the $1 trillion club have since fallen below the mark. Microsoft’s market cap is currently $995.554 billion and Amazon’s is $955.026 billion.
SEE ALSO:
Microsoft joins $1 trillion market cap club – April 25, 2019
Apple is once again the world’s most valuable public company – February 6, 2019
Amazon tops Microsoft as most valuable U.S. company – January 8, 2019
Apple hits landmark $1 trillion valuation – August 2, 2018
Have investors finally woken up to Apple’s potential and that it isn’t all about the iPhone? (Probably Not)
A couple more quarters and I don’t think they will have much choice it will be like a kipper to the face and like it or not the smell will linger
By the time AAPL maintains $1T it’s also highly likely AMZN and MSFT will share the distinction, each trading top place at times with the other two. For the past trading week MSFT has led AAPL by between $10B-$54B.
The iPad might have a bigger role in Apple’s future than the iPhone.
Unlikely. Even schools are choosing Chromebooks over iPads and I believe that was Apple’s best chance to sell plenty of iPads. Apple dropped the ball in education and threw away a huge opportunity to legitimize iPads.
I don’t believe that the iPad is in utter waste of money. Purchase a Mac be done with it
Last time, Apple reached $1 Trillion, but gave it up soon after that. Hopefully this time, Apple stays and remains in $1 Trillion
for a long while, if not forever.
I second your comment. Apple has plenty of reserve cash to burn to keep revenue up in the long-term but with Apple, one never knows what will happen. Last year, I was sure Apple could hold $1T and when it quickly lost $450B in value, I could only shake my head in disbelief. Even with slumping iPhone sales, I never saw that massive train wreck coming.
People are starting to become comfortable with the stock as Apple’s plans for the post-insanely-great products world appear to emerge. There is presumed growth potential that is theoretically not tied to iOS and macOS. However as many people here point out, how do you grow services unless you grow hardware sales? How do you grow hardware sales unless you innovate? We like macOS around here but it seems to me, also as many people point out, Apple’s eggs are in the iPad basket. iPads, AppleTV, and iPhones. Essentially iOS. As far as the Mac is concerned, Apple is tossing it a life line called Marzipan.
As MDN points out, Apple appears to be realizing Steve Job’s dream of owning the entire ecosystem. I.e. the razors, the blades, the shaving cream, and the mirror.
If they would overhaul iCloud services and make them appealing to businesses as well, it would greatly help with this vision. It would be great to go to Apple for all the services that used to be in macOS server, and have them seamlessly connected. Currently I have to stitch together a different cloud strategy for small businesses that don’t want a computer room and IT person.
Firm up iCloud so it works easily, and intuitively, fix that “file system” on iOS, let’s have a home user and work user on iPads, toss in the $175 iOS mouse, and many people might buy off on the Idea of Apple being the core of all their entertainment and communications and services, both personal and private.
This is where Apple’s spiel about their customers not being their product comes in. There is one company out there that could offer a competitive vision. Don’t laugh, but it’s Facebook. Facebook could easily offer all the services Apple is offering through their browser and app interface. THIS IS WHY TIM COOK REGULARLY REMINDS US, in passive aggressive ways, that Facebook is evil. This is why he’s suggesting the Internet needs government regulation. He feels that regulation will harm Facebook, but. It Apple. This is why I believe MDN hates Facebook with a passion. Not all social media, just Facebook.
I don’t think we’re past the era of insanely great products at Apple, they are just taking a bit longer to arrive. It’s also easy to take the lack of products as a lack of innovation. I think innovation is happening at all levels within the company, from Silicon to Audio, it just not in the form of a VR/MR headset or a self driving car yet. It has however given us products like AirPods and AppleWatch which are both becoming great products.
I just can’t understand how people can fail to understand that Apple is a fundamentally different company than when it was run out of a garage, or even when Jobs returned. It takes a genius to develop and sell 100,000 copies of a new product. It takes something more than genius when your installed product base is something north of a billion devices. Steve could build issue a flawed operating system update that affected one in a million users and it is entirely possible that not a single person would be heard to complain. Today, a flaw no more serious could affect over a thousand people, all of whom will be screaming on social media. That factor is stacked on the reality that a device with twice the transistors (Moore’s Law) running software with twice the lines of code is very unlikely not to have more rare bugs that don’t get noticed in QA.
Moore’s Law (as it is) has already ‘failed’ a few years ago. Now instead of getting performance from shrinking the size of transistors, it’s a race for number of and efficiency of ‘cores’ in a chip.
Right. And when you double the cores, you generally double the transistors. The complexity still grows, even if the size isn’t shrinking.
I will give you that. Moore’s Law does state doubling of transistors in an integrated circuit (generally single chip). Till recently it was accepted to be within a given size of chip, but I suppose it is still technically valid if you put the double the number of transistors on a chip twice the size.
I also don’t think the pay strategy for Apple TV is going to work out. Tim Cook’s idea of Apple TV doesn’t pan out with the broader market people want to see what interests them. Tim is all about nice no foul language nothing gruesome etc. I’m not overly impressed with the programming I’ve heard about so far although there are a few I just don’t think it’s gonna be worth the money. I’m also not a fan of subscription
Visible signs the “big ship” Apple is, is turning. If you’re a long term investor and not a trader, now looks like a good time to enter or enhance your position with AAPL. The next few quarters should bear this out, but by then you might have left some $$$s on the table.
Take with a grain of salt. Note that the article states: “Apple shares were marked 6% higher at the start of trading Wednesday to change hands at $212.82 each,” At closing according to Bloomberg, AAPL remains at #2 ($969.9B) after MSFT ($979.9). In contrast to Tuesday’s closing at $946.2B and $1.00T respectively. Nice spin since in most cases Stocks tend to open higher than they closed the prior day.