Market capitalization of Apple

Apple, perhaps, is the only company whose capitalization interests not only businessmen and analysts, but also ordinary people. Indeed, not every day (year, decade) there are companies that can annually beat records and earn cash, which you can buy whole countries.

The company's capitalization has been steadily growing for many years, as well as the enthusiasm of the leadership heading towards the goal of 1 trillion dollars of capital. In this article, we'll look at the capitalization of Apple over the years. How rapidly the company developed and what factors contributed to it.

Capitalization until 2010

Today it's hard to imagine this, but the capitalization of Apple for the period from 2000 to 2004 did not exceed $ 10 billion, while its main competitor in 1999 could boast a capitalization of $ 601 billion. Who would have thought that everything would change so dramatically?

The turning point in the company's history was the release of the iPhone. The first smartphone with a touch screen "for people" has done its work. The company's operating profit at the time the phone was released was $ 1 billion per quarter. Already in early 2008, this amount rose to $ 3 billion. After another 2 years, at the end of 2010, the company's profit was 4.7 billion dollars.

And the company achieved this growth, despite the fact that the media and analysts literally waged an information war against the company, constantly declaring the imminent collapse and the need to sell shares, the value of which in 2007 ranged from $ 220 per share.

Capitalization for the period from 2011 to 2013

The situation became even more absurd in 2011. At that time Steve Jobs had already left his life, and the last product of the company was iPhone 4s. That's when Apple showed unprecedented growth, the ratio of which was 121%. The company grew faster than any other corporation on the S & P 500 list.

Alas, analysts and then did not notice (or preferred not to notice). Mass media around the world reported that iPod sales fell sharply (by 4%), but modestly kept silent that sales of the iPhone - a key product of Apple - grew by 140%, which is higher than the growth of the entire industry as a whole. In fact, iPhone sales already bypassed the whole market and were 4 times higher than that of all smartphone manufacturers combined.

To see the rapid growth of the company, it was enough to look at the gap in the amount of profit in 2010 and 2011. огласив тот факт, что акции Apple сильно недооценены и необходимо принять меры по повышению капитализации до 1,4 миллиарда долларов. At the end of 2013 corporate raider Karl Aiken made an important statement, finally announcing the fact that Apple shares are highly undervalued and it is necessary to take measures to increase the capitalization to 1.4 billion dollars. And he also called for an increase in the reverse-release program to 150 billion, but Apple raised the bar to 200 billion dollars.

Capitalization for the period from 2014 to 2016

The situation changed fundamentally after the release of the iPhone 6. The new model of the phone with an enlarged display allowed the company to grab a massive market share and again increase capital. As of the end of 2015, Apple has already had $ 216 billion in cash in its bins.

Market capitalization of Apple at the beginning of 2015 was 700 billion dollars, which is an unprecedented record for the company, whose shares are freely bought and sold on the stock exchange. It was an abnormal growth. A year later, the company slowed down and temporarily lost the title of the most expensive company. Exactly for one day.

The first quarters of 2015 and 2016 turned out to be a sign for the company. Apple managed to earn 18.02 billion and 18.36 billion respectively. By the end of the year, the company's capitalization remained at a position of $ 736 billion, which allowed it to remain the most expensive company in the world and the most expensive brand.

Capitalization of Apple for 2017

Where the situation has started to develop more intensively this year. Today, the capitalization of Apple already exceeds the $ 800 billion mark. This was announced by the company's CEO Tim Cook on Tuesday May 9 this year. During the trades, the price of one share was 153 dollars per share. In total there are more than 5 billion securities in circulation.

For comparison, at the same time, Alphabet's capitalization was 652 billion, and Microsoft's 533 billion. Apple still shows an immediate increase in profits, and this despite the fact that sales of some key products declined. So, iPhone sales for the first time in history have fallen by 1%. And iPad sales fell by 13%.

At the same time, the mood of analysts and shareholders has changed noticeably. If earlier all those who had a relation to the securities market spoke about the company skeptical and did not believe in its success, now each of them sings to it praises.

President of LibertyView Capital Management Rick Mekler praised the company for the opportunity to maintain such a high position, while having a very limited range of products, as well as maintaining a margin, ignoring the success of competitors.

The net profit of Apple in the second quarter grew by almost 5%. The company's revenue for the quarter was almost 53 billion dollars. For comparison, in 2016, this figure was at around $ 50 billion.

Prospects for further growth

If you believe the forecasts of analysts, then for Apple everything is just beginning. If the company's quotes continue to grow at the same rate as now, the market capitalization of the company could exceed $ 1 trillion already this year. This is sure analyst Brian White, who claims that Apple's shares will rise in price to $ 202 per share this year.

It is also worth paying attention to the growth of the company for the period from autumn 2016 to May 2017, you can see almost 50% increase. Moreover, Apple occupies 4% of the S & P 500 index, the total capital of which is almost 22 trillion dollars. The main catalyst for growth should be the jubilee iPhone X.

So that she could buy Apple for her money?

This question interests many. On the Internet, there are a lot of beautiful graphs, showing companies that Apple can buy for its cash.

• If desired, Apple can reverse the fast-food market by buying rights from Starbucks (84 billion), McDonald's (93 billion) and taking Dunkin 'Donuts (5.3 billion) in addition. In this case, Apple will still have to surrender.
• Being the most expensive brand in history, Apple can buy itself another one of the same legendary brand. For example, Coca-Cola, which costs almost $ 180 billion. Or something more necessary for the "apple" corporation - the company "Disney". Its cost is 202 billion dollars.
• Automotive industry. Another real scenario for the company is the purchase of an auto concern for the development of an unmanned vehicle control system or the creation of its own transportation service, in the manner of Uber.
• Well, finally. Apple could enlist the technology of other IT companies, simply buying them. Apple could buy Spotify to develop Apple Music without competitors. I could buy Nokia Here, for the development of my own cartographic service. Apple has enough money even for Adobe and Sony combined.

Comparison of Apple's capitalization with Russian companies

Every year, when the capitalization of Apple grows and sets a new record, sites, one way or another related to the subject of Apple, draw beautiful graphics, which compare the cash of Apple and other companies. This happened last year, when the company's capitalization rose to a mark of 724 billion dollars.

It is especially interesting for us to compare Apple with Russian companies. For example, the capitalization of Gazprom is only 1/13 of Apple's capitalization. Where the situation is worse in comparison with Sberbank (capitalization of 21 billion) or Megafon (capitalization of 9.5 billion).

Capitalization of Apple in comparison with the stock markets of states

Since we are talking about the fact that Apple is the most expensive company in the world, why not, apart from buying brands and companies, do not threaten to purchase countries. In 2014, the Internet was full of colorful headlines - "Apple's capitalization exceeded the capitalization of Russia." Similar articles appeared on the network after the leading Bloomberg TV said that by selling Apple, it will be possible to buy out the entire stock market of Russia and at the same time there will be a change in the purchase of the iPhone 6 model for every resident of Russia.

For the sake of justice it is worth noting that this happened not only because of the growth of the "apple", but also because of the fall of the Russian economy. Earlier, in 2012, when the capitalization of Apple was only 400 billion, the "apple" corporation could already afford the acquisition of Greece. Who knows how many years will be required before the moment when Apple will have more money than the whole world.