Apple Now Worth Over $700 Billion
Apple Incorporated, the largest company in the world by market capitalization, has reached a valuation record of $700 billion. When trading ended Tuesday, November 10, Apple was valued at $710.7 billion, making it the first U.S. Company to reach that record. Market capitalization is the company’s value as determined by investors. It is calculated by multiplying the number of shares outstanding by the share price. At the close of trading Tuesday, Apple was twice as valuable as Microsoft, its long-term technology rival. Apple’s value has dramatically increased since the introduction of the iPod. Since then it has dominated the mobile phone and tablet markets.
Speaking at the Goldman Sachs Technology and Internet Conference, Apple chief executive,Tim Cook said Apple is hitting its stride. “We’ve taken IOS and extended it into our car, into your home, into your health. All of these are really critical parts of your life. We want one seamless kind of life” Cook said. Cook pointed out that Apple has opened more than 20,000 points of sale worldwide. Tim Cook revealed that Apple’s emerging market revenue totaled 50 billion dollars. In China, revenue rose 70%.
Apple’s posted quarterly profits of $18 billion, more than any company in history. Driven by the sales of over 74.5 million iPhones, revenue was a record high $74.6 billion, beating analysts expectations. Analysts are also seeing an expansion in the adoption of the Apple Pay System. Charlie Scharf, the CEO of Visa and Master Card CEO, Ajay Banga both hinted that the Apple Pay System will become international. Apple Pay accounts for every 2 out of 3 dollars spent through Visa, Mastercard and American Express via contactless payments. Apple Pay’s performance in the U.S. is likely to be emulated as the service is implemented in other countries.
In a note written to investors, Cantor Fitzgerald analyst, Brian White commented that Apple should have plenty to watch for in this transformation cycle. Apple has a highly successful iPhone cycle, an extensive 4G ramp in China and the anticipated launch of Apple Watch in April. The Apple Watch, is the first product line to ship under Tim Cook’s leadership. First look reviews have given the Apple Watch high marks as a smart watch with a well-designed UI, digital crown, variations that will appeal to different people, and touch force sensitivity. The Apple Watch is closely integrated with Siri. Included will be slimmed down versions of apps that will allow you to glance at email, messages, weather, calendar, Apple Pay, fitness reminders and more.
Combined with Apple’s record-setting quarterly earnings in January, the internationalization of Apple Pay and the upcoming launch of Apple Watch, investors confidence in the company remains high.
Jonah Engler is a Financial Expert based in New York City. A full time stock broker, franchise owner, coffee lover and investor; Engler helps startup businesses and franchise’s grow through smart financial planning.