Published: Sat, August 04, 2018
Business | By Eloise Houston

Apple is the first $1 trillion company in history

Apple is the first $1 trillion company in history

What happened: Apple's market value crosed the $1 trillion mark today-a first for any publicly traded U.S. company. The tech giant had relatively flat iPhone sales but increased its revenue thanks largely to higher-priced models including the iPhone X, with a list price of just under $1,000.

The company was co-founded by the late Steve Jobs, a product innovator who helped prevent the company's collapse in the late 1990s.

Market capitalization, or market cap, is the total combined value of all of a publicly traded company's outstanding shares.

The number goes up when Apple buys its own shares to take them off the market.

More recently, Apple has been in a race to $1 trillion with Seattle-based e-commerce giant Amazon, which is now valued around $879 billion.

Behind Apple are Amazon, Google parent Alphabet, Microsoft and Facebook.

But given Apple's fundamentals and its reasonable valuation, the trillion-dollar market cap looks a lot more like a milestone than it does a wall.

PetroChina, the world's fourth biggest oil company by revenue, was the first company to pass the $1tn mark in 2007.

Even with its $1,000,000,000,000 stock market value, many analysts do not view Apple's shares as expensive.

Apple plowed by the one trillion dollar valuation mark on Thursday.

Today's chart shows this milestone - as well as numerous ones before it - through a period of over 200 years of US market history.

Stock markets are volatile, and a small but growing threat from Chinese smartphone makers might eat into Apple's margins in the coming years.

Virtual assistant Siri is built into Apple devices, and the company boasts the most popular smart watch on the market. But, it's likely just a stepping stone to even more gains.

Apple isn't safely ahead of everyone else yet, Amazon is now valued at around 900 billion and is closing in on a trillion steadily as well.

The first company to hit $1 billion in market capitalization - this was far before the breakup of AT&T into the "Baby Bells", which occurred in 1982.

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