Last week the stock market recorded a long-awaited record. Apple shares rose by 2.92% to 207,39 dollar apiece.
The total cost of the shares exceeded 1,019 trillion dollars (a thousand billion!!!). For comparison, nine of Ukraine’s GDP in 2017, or 5 of Greece’s GDP, or 1 / 20th of the US GDP, the newspaper “Express”.
It all happened after the Apple logo which is known to all the bitten Apple, unveiled the next financial report for the second quarter. Revenue grew by 17% and amounted to 53,3 billion dollars. Although analysts predicted that it will not exceed 52,4 billion. Such indicators have caused a stir on the stock market, pushing the stock price up. And Apple has risen to Olympus, becoming the most valuable company in the world. The success of her popular and iconic developments — smartphone, iPhone, iPad, Mac personal computer, portable media player iPod, the smart watch Apple Watch.
Before that, the record company went more than a year. Apple was founded by Steve jobs, Steve Wozniak (Ukrainian origin) and Ronald Wayne in 1976, in a normal garage. Start-up capital was the proceeds from sold jobs an old Volkswagen and scientific calculator Hewlett-Packard 65 (it Wozniak gave just $ 500).
A year later, the world saw the personal computer, the Apple II had color graphics and open architecture. Soon the founders were celebrating a huge success: selling more than 5 million of these computers. In ten years the company became one of the market leaders in personal computers, there were almost 4 thousand people.
In 2007, Apple introduced the touchscreen smartphone — iPhone, the same year the company included in the Dow Jones. Actually, iPhones are still over 40% of the income of the company.
“A major factor in the increase in market capitalization Apple are selling iPhone, which in 2015 is kept at a high level,” — said a lecturer of the MBA of Kyiv Mohyla business school Eugene. Although in the second quarter of this year the company sold less iconic gadgets than planned — 41.3 million, total revenues of Apple grew from the demand for new and more expensive mobile devices. The average price of a new iPhone now — 728 — 730 dollars. All the branded stores sell Apple products on average 95 — 100 thousand dollars a day.
Why the products of this company is not losing popularity and gaining more fans?
According to economic expert Maxim Prazdnikova, it’s simple: “Apple sells the dream, the lifestyle, the opportunity to belong to a special class. If you have an iPhone, MacBook, Airpods, Apple Watch, iMac, you don’t need to think about the synchronization of the devices, their configuration and data migration. They complement each other.
Even to pay in stores, you can not paper money or card and the device, attaching the finger or looking at the screen. Such a systemic solution can worth a trillion”.
“The company gradually formed a strong ecosystem has evolved from a manufacturer of the iPhones in the company, which develops software and provides useful consumer services, — says Eugene. — Apple’s revenue has increased not only for the sale of smartphones, but thanks to the business services, which accounted for about $ 9.5 billion. Now investors value the company based on the services it can provide through their products: the payment function, the use of cloud services and others.”
“King from the cost estimate” Aswat Damodaran, like many other experts, argues that the achievement of the capitalization of a trillion dollars is only the beginning of further growth in the value of Apple shares.
“By the way, for the first time in the history of the stock markets capitalization in the trillions of dollars reached the company Petro China November 5, 2007 — magaden Intelligence. — On the threshold of a trillion now is Amazon, the giant e-Commerce. In July of this year, the value of all shares of the company increased to $ 900 billion.
If you compare the growth in the value of shares of Apple and Amazon, over the past five years shares of the second growing 2.5 times faster. On the heels of the two companies comes the Alphabet (manages the assets of Google Inc), the capitalization of which amounts to 852 billion dollars, Microsoft Inc (829 billion) and Facebook Inc (517 billion)”.