ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

With $3 Trillion In Valuation, Apple Is Back As World's Biggest Company

Industry analysts further speculate that Apple's valuation could reach $3.5 trillion, with a bullish estimate of $4 trillion by fiscal year 2025.
PUBLISHED JUL 3, 2023
Cover Image Source: Pexels/ Pixabay
Cover Image Source: Pexels/ Pixabay

Apple has once again reached a milestone in its valuation. Following the recent World Wide Developers Conference (WWDC) announcements, Apple's market capitalization has soared back to $3 trillion, reestablishing its dominance in the market on Friday, June 30. As the NASDAQ opens on Monday, Apple's pre-market trading had already touched $190.73, solidifying its impressive feat.

In January 2022, Apple made history by becoming the first company to attain a $3 trillion valuation for a brief period. However, over the course of the following year, its market capitalization experienced a decline, falling below $2 trillion due to investor concerns and supply chain disruptions. As mentioned by Apple Insider,  the company encountered significant challenges in its production processes, particularly with the highly anticipated iPhone 14 Pro. COVID-related issues plagued Apple's supply chain, resulting in substantial delays.

Image Source: Pexels/ Tracy Le Blanc
Image Source: Pexels/ Tracy Le Blanc

Fortunately, since the end of 2022, Apple has managed to resolve its supply chain problems, enabling production to return to normalcy. Moreover, the company has been actively reducing its reliance on China by expanding its manufacturing operations to countries like India. These strategic moves have bolstered investor confidence and facilitated Apple's resurgence in the market.

Apple's rise to a $3 trillion market capitalization has occurred alongside a reduction in the total number of shares available. The company has been diligently buying back its stock for the past seven years and subsequently retiring a significant portion of it. This stock repurchasing strategy effectively decreases the overall number of shares in circulation, creating a favorable environment for increased valuation.

Image Source: Pexels/Soulful Pizza
Image Source: Pexels/Soulful Pizza

Apple's market dominance and rising valuation are also attributed to its upcoming product lineup, set to be released by the end of 2024. The highly-anticipated iPhone 15 is expected to debut in the fall, contributing to Apple's profitability. Additionally, a range of other products is slated for release, fueling investor optimism and further bolstering Apple's trajectory.

Industry analysts at Wedbush express their admiration for Apple's forward-thinking strategies, noting that the company is playing chess while others play checkers. As mentioned by Cord Cutters,  They predict that Apple's annual services revenue will approach $100 billion in the fiscal year 2024, reflecting an impressive double-digit growth trajectory. Wedbush further speculates that Apple's fair valuation could reach $3.5 trillion, with a bullish estimate of $4 trillion by fiscal year 2025.

Image Source: Pexels/
Luca Nardone
Image Source: Pexels/ Luca Nardone

Wedbush's positive outlook stems from their belief in the expansion of Apple's App Store, particularly with the introduction of the Apple Vision Pro. This innovative product is expected to solidify the company's stronghold on the app market, contributing to its sustained growth in the future.

Image Source: Apple
Image Source: Apple

While Apple's $3 trillion valuation is undoubtedly a significant achievement, its immediate impact on everyday users is less tangible. The valuation primarily affects shareholders and investors, indicating the market's confidence in Apple's future performance. Nonetheless, for Apple enthusiasts, the company's market dominance and strong financial position can translate into continued innovation and improved user experiences.

As Apple embarks on its journey beyond the $3 trillion mark, it remains to be seen whether market forces will sustain this valuation. Nevertheless, with a series of highly anticipated product releases on the horizon, strategic moves to diversify its manufacturing base, and a robust services revenue trajectory, Apple seems poised for continued success.

MORE ON MARKET REALIST
The deal ultimately fell apart as the seller, Scotty was looking to get $375,000.
17 hours ago
The guest was blown away by the six-figure appraisal for his father's John Falter illustration.
22 hours ago
Harvey just couldn't believe that the contestant could come up with an answer like that.
1 day ago
Antoinette's win was even more special because she needed a car more than anything at that point.
1 day ago
The player, Catrice Sandt, nearly blew the Bonus Round puzzle by saying too many words in the end.
2 days ago
The co-founders of Nature's Wild Berry left the Sharks in shock with their miraculous product.
2 days ago
The contestant named Whitney could barely control her emotions as she celebrated with Ryan Seacrest.
2 days ago
The player named Kathy Young missed out on the Showcase Showdown as she had to leave.
3 days ago
Harrison closed a mega deal by scooping up three post cards for the price of one.
3 days ago
The guest who brought his father's prized possesion, had already made up his mind.
3 days ago
Harvey got a genius solution to avoid asking an awkward question to Carson Kressley's family member.
4 days ago
The player could barely control her excitement as she had a near-perfect game on the show.
4 days ago
Harrison knew it was too good of a collection to let go, and he decided to raise the stakes.
5 days ago
The guest who had little no idea about his family heirloom was shocked to know its significance.
5 days ago
Despite making a higher than usual offer, Harrison failed to close the deal.
5 days ago
The guest regretted that she wouldn't be able to keep the highly valued item in her home anymore.
5 days ago
They also triggered a showdown between Mark Cuban and Daniel Lubetsky before closing the deal.
6 days ago
As Heather took a second to solve the final puzzle, Seacrest admitted she made it look easy.
6 days ago
Carey suffered a similar snafu a few months ago while playing the same game of 'Bullseye'.
7 days ago
Fans also share some tips that could've helped Bain win the bonus round but it was too late.
7 days ago