Apple has become the first company to hit a market valuation of $3 trillion (£2.2 trillion), effectively tripling its market cap in just three years.
The tech giant became the first to reach £1 trillion in 2018 and hit its new milestone as trading began after the Christmas break, before dipping to around $2.9 trillion by the end of Monday.
The stock prices of many of the biggest tech companies have soared during the pandemic thanks to greater demand for their services. Apple has been one of the biggest beneficiaries along with Amazon and Microsoft, both of which are expected to reach the same market capitalization later in 2022.
"Most people don't have a clue of what 3 trillion dollars represents, but to put things in perspective this is more than the nominal GDP of a large economy like the UK or France," Thomas Husson, Forrester VP and principal analyst, told IT Pro.
"Of course, this is not directly comparable because you can't compare a flux and a stock but still I think it tells the story of how the huge power and responsibility of digital platforms like Apple and Microsoft, which is also valued at over $2 trillion."
Apple's share price has risen by more than 5,000% since it first launched the iPhone in 2007 and the iconic smartphone still accounts for around half of its sales revenue. The last two iterations of the iPhone, both released during the pandemic, have been very successful. The standard, Mini and Max Pro models of the iPhone 12 and iPhone 13 have been crucial in getting Apple back at the top of the smartphone market.
But that is only half of the story, as software has also pushed Apple profits to new heights. The company has long provided cloud storage and music services, but newer offerings such as TV and fitness subscriptions have also enhanced its revenues. On its own, Apple is now worth more than Boeing, Coca-Cola, Disney, McDonald's and Netflix combined.
The company's last quarterly earnings, released in October, show that Apple made a profit of $20.6 billion, despite supply chain issues caused by COVID-19.
"Despite the current macroeconomic conditions (Omicron variant, inflation risk, geopolitical tensions, supply chain issues...) the financial community trusts Apple's ability to over-perform other firms," Husson added. "Financial analysts do not seem especially worried about the impact of the semiconductor crisis or the regulation risks on Apple's business.
"I think there are a couple of key reasons why the financial community trusts Apple. In a nutshell, the core business is still performing incredibly well while investors trust Apple's ability to innovate new business lines in the future with VR/AR and the future of mobility. While Facebook is heavily communicating on the over-hyped metaverse, Apple is well prepared to shape the future of the Internet."
