Apple has hit a market capitalisation of $2 trillion for the first time in its history, despite the US enduring the worst recession since the great depression.
Apple’s shares hit $477.67 on the New York Stock Exchange yesterday, pushing its market capitalisation to $2 trillion just two years after it became the first company in history to top $1 trillion.
While Saudi Aramco became the first company in history to top $2 trillion in December, its value has since dropped to around $1.8 trillion, which Apple surpassed last month.
It comes after the technology retailer’s shares have skyrocketed more than 60 per cent this year to date, and around 120 per cent over the last 12 months.
The iPhone maker saw revenues rise 11 per cent to $59.7 billion, smashing average analyst forecasts of a three per cent decline over its previous quarter.
This boosted profits by 12 per cent to $11.3 billion as increased demand from lockdown shoppers drove growth in all its key areas.
“Adding a trillion in four or five months — that’s really quite unbelievable,” Mirabaud Securities analyst Neil Campling said.
“We have in a very quick period of time for Apple gone from a discount valuation to the market to a premium valuation.”
Its dramatic rise in value has largely been attributed to its growing focus on services, rather than on hardware.
Apple’s services arm, which includes TV, music and now a credit card, earned the company $13.2 billion in the last quarter alone and is expected to continue expanding.