I remember learning in grammar school that the first $1 billion U.S. corporation was U.S. Steel Corp. It was formed in 1901, when banker J.P. Morgan merged Andrew Carnegie’s steel company with Elbert H. Gary’s Federal Steel and William Henry Moore’s National Steel.
Apple became the first US$1 trillion (NZ$1.4 tillion) publicly traded U.S. corporation 117 years later, at 11:48:04 Eastern Standard Time on Thursday.
One trillion is a big number.
If Apple sold itself for US$1 trillion in cash, the money would be enough to buy all the goods and services produced in Indonesia – population 261 million – in 2017.
Apple is bigger than the economies of about 174 countries, including Turkey, the Netherlands, Saudi Arabia and Switzerland.
For the present, at least, Apple stands at the height of a communications revolution. Like its technology brethren – Amazon.com, Google, Netflix, Facebook – it plays a dominant role in people’s daily lives. Its share of the worldwide smartphone market is 12.1 percent. Rival Samsung has a 20.9 percent share, and Huawei has 15.8 percent.
“This $1 trillion market cap is a milestone on the way higher,” said Charlie Toole, portfolio manager with Adviser Investments. “Apple can continue to grow and continue to innovate and sell its iPhone.”
Apple’s value has had an incredible trajectory since 2007. Graph/Washington Post.
Its iPhone catapulted Apple into the spot as the largest company by market value in the Standard & Poor’s 500-stock market. It’s quite an achievement, but it’s still less of a percentage of that group than IBM was in the early 1980s or what Microsoft was in 2000.
“You need to interpret the size of Apple relative to its peers and the global economy,” said Howard Silverblatt, a senior index analyst with S&P Dow Jones