On Monday, Apple became the first company in the world to exceed $ 3 trillion in capitalization, during the first meeting of the year on Wall Street. The company which has strongly focused on services recently is preparing to launch new products this year including a virtual reality headset.
Over the course of a day, the Cupertino company achieved the feat of exceeding $ 3 trillion in market capitalization, when its stock price reached the threshold of $ 182.86. An event that comes barely more than 16 months after reaching $ 2 trillion in capitalization, and less than three and a half years of exceeding $ 1 trillion. Although the event only lasted a few hours, it underlines the great confidence placed in it by investors. By way of comparison, the market capitalization of CAC 40 companies is “only” 2,400 billion euros.
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The iPhone and services as the main engines of Apple’s growth
The company recorded strong profit growth in 2021 thanks to the pandemic which allowed it to boost its sales of computer equipment and online services. The numbers for its Christmas quarter, which will be announced on January 27, are likely to be impressive despite the microchip shortage. According to analyst forecasts, Apple’s revenue will hit $ 118 billion in the current quarter, surpassing the historic quarterly high of $ 111.4 billion set last year.
Much of this growth is due to iPhone sales, proof that consumers are loyal to the brand. In its most recent quarter, despite supply chain issues, Apple made $ 38.9 billion from sales of its phone, an increase of 47% from the previous year. The product accounted for almost half of all revenue. But the company continues to record strong growth in other activities, in particular services (iCloud, Apple TV +, Apple Music, etc.) which now represent 22% of the company’s turnover as well as Macs, including profits are reaching historic highs.
New markets to continue to grow
The 3 trillion mark has barely been reached when many analysts now agree that the company should quickly hit $ 4 trillion. The firm has a busy 2022 schedule with at least five new Macs, a redesigned iPad Pro with wireless charging support, a new version of the Apple Watch, second-generation AirPods Pro and the iPhone 14. But the most anticipated is certainly the next product of the brand supposed to allow it to enter a new market: a virtual reality headset. The headset should indeed be marketed this year with a first version that would focus on a combination of games, media consumption and communication. At the same time, Apple reportedly intends to market a fully autonomous vehicle as early as 2025.
It will take a lot of work for the competition to come and titillate Apple. The other “big techs” which have also experienced significant growth in recent months are still far behind. Just behind Apple we find Microsoft with a capitalization of 2.500 billion dollars, then Google (1.900 billion) and Amazon about 1.700 billion.