Apple becomes first company to hit $3 trillion market cap

Apple has become the first company to reach a market capitalization of $3 trillion, rising $1 trillion in less than 16 months as the coronavirus pandemic turbocharged big techs.

The tech behemoth surpassed the $182.86 mark on Monday, becoming the first publicly traded corporation in history to do so. During the day, the stock fluctuated between above and below the number.

Microsoft is also potentially on its way to the $3 trillion mark after topping $2 trillion in June. At the time of writing this article, Apple share price has made a retreat to trade at $182.01.

What you should know

Only a few companies, such as Tesla and Amazon, are worth more than $1 trillion. Alphabet, the parent company of Google, and Saudi Aramco, the oil company, are both valued at around $2 trillion, while Microsoft is valued at around $2.5 trillion.

Apple’s stock rose more than 30% in 2021 as it successfully weathered the supply chain issue and profited from increased demand for iPhones, Macs, and iPads as customers renovated their home offices during the epidemic.

Morgan Stanley analysts raised their 12-month price target to $200 in early December, stating that investors had not yet factored in the planned debut of augmented and virtual reality gadgets.

Apple’s rise to $3 trillion comes on the back of the incredible success of its iPhone line, which has spawned accessories like the Apple Watch and AirPods, not to mention services like AppleCare, the App Store, Apple Music+, and Apple TV+.

Apple’s latest hardware, on the other hand, has been plagued by the same supply chain concerns that have afflicted everyone from auto manufacturers to home appliance manufacturers. According to Bloomberg, Apple previously lowered its iPhone production goal by 10 million handsets owing to supply shortages in October.

According to Nikkei Asia, Apple’s Chinese manufacturing partners were taking days off when they should have been working nonstop to build up gadget availability for the holiday season.

Apple, like its big tech peers, is dealing with antitrust concerns. Epic Games, the creators of “Fortnite,” filed a lawsuit against Apple in August 2020, alleging that the company is breaking antitrust laws by compelling developers to utilize its in-app payment system, which gives Apple a 30 percent cut of every purchase.