In a world where Apple still rules, has American innovation died?
While recently Facebook’s stock has taken a beating, quite the opposite for Apple that have hit all-time highs as of August, 2nd, 2018.
Today, Apple became the first U.S. publicly traded company to be valued at $1 trillion. Considering that smart phone saturation has been reached for global sales, this means Apple must quickly pivot to original content to challenge Netflix, Amazon, Hulu and fellow newcomer Disney.
But let’s give them some credit, the move to more pricey iPhones seems to have worked out. Apple did the expected today, and reached the 1 Trillion dollar mark, ahead of Amazon.
Apples shares hit a magic number: that is $207.05, making it the first US company to reach a market value of $1 trillion.
Apple is still coasting on its decade old brand fame of the iPhone. 11 years, 1 month and 3 days ago, give or take a few hours.
There are no sore losers though, Amazon had also been fast approaching the threshold. Amazon, Alphabet and Tencent should pass Apple in the next couple of years rather easily.
CEO Tim Cook has overseen a nearly quadrupling in value of the company’s shares since he took the helm of Apple in August 2011, but we have to ask is Apple even an innovator anymore? They are certainly behind in AI. Will they be able to compete with original content entering a crowded market with the likes of Disney entering the fray? Apple is a filthy rich brand, but what can they do with it moving forwards?
Apple’s ecosystem remains epic, the demand for their product remains high, even as they have failed to truly innovate new products, whatever you think of the Apple Watch. Even as Huawei overtook them for 2nd spot in smart phone sales; Wall Street is increasingly oblivious to rising Chinese tech companies. If U.S. capitalism is locked in a self-protectionistic stance where Huawei is banned, the world goes on. In 2018, Apple is still King.
It this the point where tech companies scale wealth inequality beyond all global recognition? Apple itself now has a greater or higher value than the likes of the GDP of Argentina, the Netherlands, Sweden, and Switzerland, among others, according to the CIA’s World Factbook. It’s simply shocking what capitalism is becoming.
Mega-cap tech giants like Amazon, Microsoft, and Google’s parent, Alphabet, were also in the race to $1 trillion, but none could beat Apple in the end. Today, Amazon stands at $872.5 Million. Wall Street has been drunk on tech stocks mostly favoring Amazon, so it’s nice to see Apple has a last hurrah.
- Apple shares reached the historic $1 trillion market value August 2nd, 2018.
- According to CNBC, some investors may worry the most valuable company reaching these new heights may portend a significant drop is ahead like during dot-com technology bubble.
- But Apple’s stock recent rise this year is based on improving fundamentals not extreme wild valuations.
What do you think?