Apple becomes first to reach $3 trillion market capitalization
Shares in the iPhone maker have been on a tear over the past two years as consumers grab its devices to keep in touch during the coronavirus pandemic. Apple's tech peers Microsoft, Alphabet and Amazon are not far behind.
Trailblazer
Less than 18 months after becoming the first US company to breach the $2 trillion market cap, Apple has scaled yet another summit; the company has become the first to touch a market valuation of $3 trillion. Apple shares have soared during the pandemic as consumers buy its devices to stay connected and as investors bet on its new offerings such as electric cars and virtual reality headsets.
On the heels
Apple's American tech peers Microsoft, Google parent Alphabet and Amazon, which too have seen their shares climb during the pandemic, are not far behind. Microsoft is worth about $2.5 trillion, Alphabet is valued at around $2 trillion and Amazon has a market cap of nearly $1.75 trillion.
New billionaire on the block
Apple's surge has catapulted Tim Cook, the company's CEO, into the billionaires' club. The $3 trillion valuation will be a moment of vindication for Cook, who took charge in 2011 when the company was valued around $350 billion amid doubts whether he could take forward his predecessor's zeal for innovation. Cook has pledged to give most of his wealth away to charity.
Birth of garage startup legend
Apple was founded by Steve Jobs and his high school classmate Steve Wozniak in 1976 in Jobs' family garage. It was the first successful personal computer firm. Apple went public four years later in the biggest public offering since Ford Motor's debut in 1956. By the end of 1980, the computer maker was more valuable than the iconic carmaker at nearly $2 billion.
Back from the brink
Apple's next breakthrough came in the form of Macintosh, a computer with a graphical user interface. But the initial tepid response to the Mac, panned for insufficient memory and for being toylike, led to the ouster of Jobs in 1985. Jobs returned in 1997 to rescue the company from the brink of bankruptcy. Apple never looked back thanks to a succession of hit products like the iPod and the iPhone.
The iPhone moment
Apple's most groundbreaking product remains the iPhone, the first phone to pack a music player, a web browser, and email capabilities in a single device. The iPhone, which started a smartphone revolution in 2007 and pushed competitors like Motorola and Blackberry on the brink, still is Apple's money-spinner and is at the core of the company's plans to grow its services business.