Apple market capitalization

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Apple is perhaps the only company whose capitalization is of interest not only to businessmen and analysts, but also to ordinary people. Indeed, it is not every day (year, decade) that companies appear that are able to break records every year and earn cash that can buy entire countries.

The company's capitalization has been steadily growing for many years, as well as the enthusiasm of the management, going towards the goal of 1 trillion dollars of capital. In this article, we will consider the capitalization of Apple by years. How rapidly the company developed and what factors contributed to it.

Capitalization until 2010

Today it's hard to imagine this, but the capitalization of Apple for the period from 2000 to 2004 did not exceed $10 billion, while its main competitor in 1999 could boast of a capitalization of $601 billion. Who would have thought that things would change so dramatically.

The turning point in the history of the company was the release of the iPhone. The first smartphone with a touch screen "for people" has done its job. The company's operating income at the time of the phone's release was $1 billion for the quarter. Already at the beginning of 2008, this amount increased to 3 billion dollars. Two more years later, at the end of 2010, the company's profit was $4.7 billion.

And this growth the company achieved despite the fact that the media and analysts literally waged an information war against the company, constantly announcing the imminent collapse and the need to sell shares, the value of which in 2007 ranged from $ 220 apiece.

Capitalization for the period from 2011 to 2013

The situation got even more absurd in 2011. At that time, Steve Jobs had already passed away, and the iPhone 4s was the company's latest product. It was then that Apple showed unprecedented growth, the coefficient of which was 121%. The company has grown faster than any other S&P 500 corporation.

Alas, analysts did not notice this even then (or preferred not to notice). Media around the world reported that sales of the iPod fell sharply (by 4%), but modestly remained silent about the fact that sales of the iPhone - Apple's key product - grew by 140%, which is higher than the growth of the entire industry as a whole. In fact, iPhone sales already bypassed the entire market and were 4 times higher than all smartphone manufacturers combined.

You only need to look at the earnings gap between 2010 and 2011 to see the company's rapid growth. In late 2013, corporate raider Carl Aiken made a major announcement, finally announcing that Apple stock was grossly undervalued and action needed to be taken to raise its capitalization to $1.4 billion. And he also called for an increase in the reverseissuance to $150 billion, but Apple themselves raised the bar to $200 billion.

Capitalization for the period from 2014 to 2016

The situation fundamentally changed after the release of the iPhone 6. The new model of the phone with a larger display allowed the company to grab a massive market share and increase capital again. As of the end of 2015, Apple already had $216 billion in cash.

Apple's market capitalization at the start of 2015 was $700 billion, an unprecedented record for a publicly traded company. It was an abnormal growth. A year later, the company slowed down and temporarily lost the title of the most valuable company. Exactly one day.

The first quarters of 2015 and 2016 turned out to be significant for the company. Apple managed to earn 18.02 billion and 18.36 billion, respectively. By the end of the year, the company's capitalization remained at a position of 736 billion dollars, which allowed it to remain the most valuable company in the world and the most expensive brand.

Apple capitalization for 2017

The situation began to develop much more intensively this year. Today, Apple's capitalization already exceeds $800 billion. This was announced by CEO Tim Cook on Tuesday, May 9 this year. During the auction, the price of one share was $153 per share. There are more than 5 billion securities in circulation.

For comparison, at the same time, the capitalization of Alphabetamounted to 652 billion, and Microsoft 533 billion. Apple has so far shown immediate profit growth, despite the fact that sales of some key products have declined. So, iPhone sales for the first time in history decreased by 1%. And iPad sales were down 13%.

At the same time, the mood of analysts and shareholders has noticeably changed. If earlier everyone who was related to the securities market was skeptical about the company and did not believe in its success, now each of them sings its praises.

LibertyView Capital Management President Rick Meckler praised the company for being able to maintain such a high position with a very limited product range and maintain margins while ignoring the success of competitors.

Apple's second-quarter net profit rose nearly 5%. The company's revenue for the quarter was nearly $53 billion. For comparison, in 2016 this figure was at around $50 billion.

Prospects for further growth

If you believe the forecasts of analysts, then for Apple everything is just beginning. If the company's quotes continue to grow at the same pace as now, then the company's market capitalization may exceed $1 trillion this year. Analyst Brian White is convinced of this, who claims that Apple shares will rise in price to $202 per share this year.

It is also worth paying attention to the growth of the company during the period from autumn 2016 to May 2017, you can seealmost 50% increase. Moreover, Apple holds 4% of the S&P 500 index, which has a total capital of almost $22 trillion. The main catalyst for growth should be the anniversary iPhone X.

So that I can buy Apple with my own money?

This question interests many. There are tons of beautiful charts on the internet that show companies that Apple can buy with its cash.

• If desired, Apple could completely revolutionize the fast food market by buying the rights from Starbucks (84 billion), from McDonald's (93 billion) and, in addition, take Dunkin' Donuts (5.3 billion). At the same time, Apple will still have change.
• Being the most valuable brand in history, Apple could buy itself another equally legendary brand. For example, "Coca-Cola", the cost of which is almost 180 billion dollars. Or something more necessary for the "apple" corporation - the Disney company. Its value is $202 billion.
• Automotive industry. Another realistic scenario for the company is to buy an automaker to develop an unmanned vehicle control system or create its own transportation service, in the manner of Uber.
• And finally. Apple could have obtained technology from other tech companies by simply buying them out. Apple could buy Spotify to develop Apple Music without competition. I could buy Nokia Here to develop my own mapping service. Apple has enough money even for Adobe and Sony togethertaken.

Comparison of Apple's capitalization with Russian companies

Every year, when Apple's capitalization rises and sets a new record, sites related to Apple in one way or another draw beautiful charts comparing the cash of Apple and other companies. This happened last year, when the company's capitalization rose to $724 billion.

For us, the comparison of Apple with Russian companies is especially interesting. For example, the capitalization of the company "Gazprom" is only 1/13 of the capitalization of Apple. The situation looks much more deplorable in comparison with Sberbank (capitalization of 21 billion) or MegaFon (capitalization of 9.5 billion).

Apple capitalization in comparison with the stock markets of states

Since we are talking about the fact that Apple is the most expensive company in the world, why not, in addition to buying brands and companies, not aim at acquiring countries. In 2014, the Internet was full of a colorful headline - "Apple's capitalization exceeded the capitalization of Russia." Similar articles appeared on the net after the Bloomberg TV host said that by selling Apple, it would be possible to buy out the entire Russian stock market and at the same time there would be a change for the purchase of the iPhone 6 model for every resident of Russia.

To be fair, it should be noted that this happened not only because of the growth of the "apple", but also because of the fall of the Russian economy. Even earlier, in 2012, when the capitalization of Applewas only 400 billion, the "apple" corporation could already afford the acquisition of Greece. Who knows how many more years it will take before Apple has more money than the whole world.