Apple achieves distinction of becoming the first US company to be worth $2 trillion
By Vivek Raj | Galatta | Aug 20, 2020, 12:45 pm
Apple Inc made history on Wednesday as the US company's market value surged past $2 trillion with its 2020 stock pushing forward. It has now earned the distinction of being the first US company to garner this massive achievement as shares of the iPhone maker shot up to as much as 1.4% to $468.7 during midday trading. Despite a March low, the stock of the company has doubled off in a rally after strong earnings results and the early positive word-of-mouth out in the market over its much-awaited upcoming 5G iPhone.
The new gains have cemented Apple as the most valuable company in the world and is currently being trailed by Amazon.com Inc and Microsoft Corp. Although the company has not brought any new groundbreaking innovations to the market in the past two years, this rapid growth of Apple to $2 trillion is staggering.
Under CEO Tim Cook, Apple has managed to remain unrivalled in its profits in recent years with the company going on to produce billions of devices, with most of them assembled in China. The company has garnered a customer base that frequents its products consistently and buys new gadgets every few years, while also paying monthly fees to use Apple’s suite of digital services. Apple's growth has been tremendous over the years despite earning more revenue from organizations that run businesses on iPhone apps.
Apple's business has expanded further in the wake of the coronavirus pandemic, which forced people to work, learn and socialise virtually. Despite shutting down a majority of its retail stores due to the COVID-19 outbreak between April and June, the company posted $11.25 billion in profits, which is 12% up from a year ago. All the company's products' sales saw an increase in every part of the world.
The Silicon Valley company has also resorted to stock buybacks of late in order to boost its valuation and enrich its investors and executives. Approximately $175.6 billion was returned to shareholders after the company's value hit $1 trillion, including $141 billion in stock buybacks. Since 2012, it has also repurchased its own shares worth more than $360 billion, which is by far the most for any company, while also announcing plans to spend billions of dollars more on Apple stock.