California’s Apple Inc. Becomes the First Company to Reach 1 Trillion in Value
California based tech giant, Apple Inc. set history in 2018 by becoming the first publicly traded U.S. company to reach $1 trillion dollars in market value. The market capitalization of the tech giant has led many to speculate on which company will be next, or wonder when is this bubble going to burst. Amazon was close behind the Apple benchmark, as they hit the $1 trillion mark early in September of 2018. Much like Amazon, Apple began with humble beginnings out of a garage, with very few employees.
Steve Jobs started Apple Computer with his friend Steve Wozniak out of his parent’s garage in California when he was just 21. Since 1976 Apple has seen its fair share of economic triumphs and market tragedies. Apple exploded in the 1980’s personal computing revolution but quickly took a back seat to Bill Gate’s Microsoft who dominated the market for the greater part of the 80’s and 90’s. Apple had struggled for a while on where their products fit in the mix of personal and home computing. It wasn’t until Steve Jobs introduced the iPod in 2001. It was a huge success and with the introduction of the iPhone in 2007 Apple Inc. had begun its market domination of personal computing devices.
Today, that market domination has really paid off for investors. In 2007, Apple sold 1.4 million iPhones. In fiscal year 2017, Apple Inc. sold 216.76 million iPhones and that trend is likely to continue. It kind of goes without saying, but $1 trillion dollars is a lot of money. In comparison, the United States federal government will spend $3.6 trillion in 2018. That means one company is essentially worth as much money as one quarter of total federal operations. Current CEO, Tim Cook has stated that Apple stands out in the tech industry and this milestone is one more thing he can point to as proof.
Apple’s vision for the future is still grounded in Steve Jobs’ original philosophies. Tim Cook has taken the California company higher than any other company in US history. Cook lately has been taking shots at the other key players in the tech industry. Fundamentally poised to help its users protect their privacy, Cook has pointed out that other tech companies like Facebook and Google collect as much data as possible with their users. The philosophy at Apple has been much different, as even Cook has stated that Apple gathers as little information as possible on its users. Privacy concerns are growing in the American public and Cook has stated that privacy is “one of the most important issues of the 21st century”. This strong stance on privacy has sheltered Apple Inc. from government scrutiny and potential regulation challenges as many officials are looking to regulate social media and the internet.
Apple is likely to continue their unprecedented growth. Their other products that include Apple Watch, Beats products and Apple TV hold a market share of $3.74 billion. The company is also looking to enter the streaming television marketplace. They will begin to compete with Netflix, Hulu and Amazon and further expand their global empire.
The benchmark of $1 trillion dollars is an important one for the books in the history of American business. The truth is that all of these large, multi-national corporations start out somewhere small. The prospect of owning your own small businesses has exciting implications that you too can achieve the ultimate American dream. While your company may not reach the $1 trillion mark, you could see it grow into something life changing for you, your family, your friends and the community as a whole. Shawn Davis and his team at LINK Business are here to help you get started.