This is how powerful Apple was under CEO Tim Cook.
It took 43 years for Apple to hit the $ 1 trillion market cap. But it only took two years to double that number to $ 2 trillion. More astonishing, more impressive, is the $ 2 trillion milestone reached in the global economic slowdown due to the Covid-19 pandemic.
Apple on Wednesday became the first U.S. company to reach a market cap of $ 2 trillion, after shares rose 1.4% to $ 468.65. It was a major milestone for the iPhone maker, consolidating its title as the world’s most valuable company and showing that the Covid-19 pandemic was unlikely to stop the growth of public giants. Turmeric.
As recently as March, Apple’s market capitalization fell below $ 1 trillion, after the stock market plunged amid concerns over the Covid-19 outbreak. But then the stock prices of tech giants Apple, Microsoft, Alphabet, Google and Facebook rose steadily.
Investors have invested billions of dollars in these tech giants, betting that the immense power of tech companies will serve as a safe haven in the great recession caused by the Covid-19 epidemic. cause.
Together, the value of the five tech giants has increased by nearly $ 3 trillion since March 23. This equates to the growth of 50 companies in the combined top S&P 500, which includes billionaire Warrent Buffett’s Berkshire Hathaway, Walmart and Disney. Apple alone, its market capitalization grew by about $ 6.8 billion per day, more than the value of the national carrier American Airlines.
“These companies have become the safest flights,” said Aswath Damodaran, a finance professor at New York University who studies the stock market. The epidemic crisis has further enhanced the power of the technological Goliaths.
The fact that Apple has grown so rapidly to $ 2 trillion is particularly astounding, as the iPhone maker hasn’t done a lot of new things in the past two years. Apple has simply built a whole ecosystem, embracing the way people communicate, play, and shop. To the point where Apple no longer needs to rely on breakthrough innovations to keep its business afloat.
Apple $ 2 trillion under CEO Tim Cook
Apple was worth $ 1 trillion for the first time in August 2018, after decades of innovation. The company founded by Steve Jobs and Steve Wozniak in 1976, has created many world-changing products such as the Macintosh computer, iPod, App Store, and iPhone.
Since then, Apple has mainly edited and refined the advances of the past, selling them under new names like Apple Watch Series 5, AirPods Pro, and iPhone 11 Pro Max. Apple is also focusing more on services and software, selling Apple Music subscriptions, or charging fees from iOS app developers.
Under CEO Tim Cook, Apple’s most revolutionary invention was the ability to make a profit despite difficult circumstances. Tim Cook has built an incredibly complex global supply chain to maximize profits, focusing on one product line to keep customers in his ecosystem, so they keep buying new devices. Every few years, buy new accessories and pay for Apple services.
From April to June 2020, even with many Apple Stores closing, profit still reached $ 11.25 billion and grew 12% year-over-year.
Luca Maestri, CFO of Apple, said in an interview last month: “Our products and services are well suited to the daily lives of our users. In some cases, it has proven to be even more effective during a pandemic. But Maestri also insisted that the Covid-19 outbreak was good for Apple, he said, without the disease Apple could make billions in additional profits.
The power of the 5 tech giants is even stronger
Besides Apple, Amazon, Microsoft, Facebook and Alphabet have also raised billions of dollars amid a pandemic and economic recession. The overwhelming influence these tech companies have wielded for years has put the government under intense scrutiny in recent years, even as it hosted a hearing on the top four tech CEOs in Congress last month.
David Cicillin, Democrat and chairman of the House of Representatives subcommittee, investigates how tech giants think these companies are thriving. “These companies have the capacity to implement dictatorial policies, to punish them and to scare other companies,” Cicillin said.
Last week, the incident between Apple and Epic Games showed the power of the App Store. Apple takes advantage of the exclusive app store and ecosystem on iPhone and iPad devices to charge 30% of all payments through the developer’s app. When Epic Games introduced its own payment method in the Fortnite game, it was immediately removed from the App Store by Apple and threatened to punish more severely.
Once the power of these five tech companies grows too big, the entire world economy will depend on it. We can see a lot of small technology companies, a lot of suppliers depend on Apple, without Apple is dead. Or like many advertising and publishing companies depend on Facebook. This could threaten the development of the world economy in a fair and equitable manner.