Apple becomes the first company to reach $3 trillion market value

Apple has become the first company in the world to reach a market value of $3 trillion, an increase of 40.65% in the last 12 months. It was also the first to reach the $2 trillion market value, in August 2020. 

The Cupertino company’s recent growth can once again be attributed to the growing iPhone sales, even though their supply has not been steady due to the global chip shortage. Units of the newly launched iPhone 13 and 13 Pro series were not available for several days after the launch in September.  

Yet, Apple reported a 40% increase in iPhone sales in 2021. iPhones made up 46.6% of the company’s overall revenue in Q4 of FY 2021.  

According to a recent International Data Corporation (IDC) report, iPhones with an average selling price (ASP) of $950, accounted for 43% of all smartphone revenues in CY 2021, even though its market share was only 17.1% and lower than that of rivals Samsung.  

Also read: Apple offers up to $180,000 bonus to retain talent amid AR/VR push 

In Q4 FY21, Apple posted revenue of $83.4 billion and a net quarterly profit of $20.6 billion.  

Though iPhones remain the key growth driver, for now, smartphone sales are expected to hit a saturation point in key markets. It is one of the reasons why Apple is eyeing emerging markets such as India.   

Apple has also been expanding in other segments such as services, wearables and home devices. The services business, which accounted for 21.9% of the company’s revenue in Q4 FY 21 and was the second-biggest segment after iPhones, is also a major focus area for Apple. The company has been investing and forging new partnerships to create more original shows for Apple TV+. It has also bundled some of the services under a more cost-effective umbrella subscription plan.  

It is also said to be working on augmented reality (AR) and virtual reality (VR) headsets and may even launch its first VR headsets sometime this year, as was reported by Bloomberg earlier. Apple’s electric cars are also reportedly under development and can be launched sometime in 2024.   

Apple is one of the six companies currently valued at over $1 trillion. According to the latest data from companies market cap, Microsoft ($ 2.5 trillion), Google parent company Alphabet ($1.9 trillion), Saudi Aramco ($1.8 trillion), Amazon ($1.7 trillion), and Tesla ($1.2 trillion) are the other companies in the trillion-dollar club.  

Facebook parent company Meta Platforms, which recently announced its ambitious plans to become a metaverse company, is knocking on the doors with a current market value of $941 billion).