California based tech giant, Apple has become the first company in the United States to hit $1.5 trillion market value in 2020. The company’s shares are experiencing a steady increase in the stock market since the start of June. On June 10, the share value of Apple increased by two percent to $352.22 which resulted in an impressive $1.53 trillion market value of the company.
Tech industry rumors painted a completely opposite picture for 2020 revenues with continuous reports of production delays due to prevailing global COVID-19 pandemic. Having said that, the rumors were not all baseless. At the Q2 earnings call, Apple CEO, Tim Cook reported that the pandemic had shifted the consumers buying trends from more popular devices like iPhone, to services.
He shared that iPhone sales had dropped due to low consumer spending while FaceTime and News service subscriptions, along with iPad sales, experienced growth due to stay at home orders. Observing consumers buying trends, smartphone manufacturers Apple, Samsung and other companies lowered internal sales targets for 2020.
Despite supply chain and production difficulties because of COVID-19 imposed lockdowns around the world, Cupertino HQ launched the new mid-range 2020 iPhone SE, 13 inch MacBook Pro, Magic Keyboard for iPad Pro and iPad Pro 2020. This product line-up made a beneficial difference for the company.
Apple’s Market Value
In May, an SEC filing revealed that Bill Gates Foundation bought up to 501,044 Apple shares, and since then California tech giant is on the path of recovery from 15% drop in Q1, 2020. The company itself was reported to be buying back its stock in the past years.
A company’s market value is estimated as a product of its share price against the number of outstanding share of its stock. Currently, Cupertino HQ’s share price is $352 with $4.3 billion in outstanding shares, which has inherently increased its market value.
Companies with diverse services and hardware products have survived and some have boomed during the current COVID-19 pandemic. Microsoft is marginally behind Apple.
- Microsoft- $1.48 trillion
- Amazon- $1.32 trillion
- Facebook- $676.69 billion
As uncertainty remains over the eradication of coronavirus, it is unclear how the health crisis will impact the tech industry in the coming days. But CEO Tim Cook has assured that Apple has a great line-up of new products coming our way and some products resembling in functionality with existing third party devices like digital tags and AirPods.
What do you think of this landmark milestone that Apple has reached? Let us know in the comments section.