Davit’s Business Breakdown: Apple Approaches a Trillion

Posted on January 25, 2018

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By Davit Antonyan

Courtesy of CNN Money

“Say hello to the future” claimed Apple Inc. with the release of its innovative iPhone X. Yes, the one that you have probably seen your friends open by staring at, and either envied or ridiculed. Even if it’s a bit silly, the future holds results for Apple that are anything but silly.

Apple is expected to become the world’s first publicly-owned trillion-dollar company (where the general public can purchase shares of ownership in the company). That’s a lofty title, but one that could be attributed to surging sales of the iPhone X, and holds profound effects for the future.

Apple has a current stock market valuation (estimated net worth) of $869 billion, and is closely followed by Alphabet (Google’s parent company) at $729 billion. Microsoft is at third place, with a current valuation of $664 billion.

Recently, Apple admitted to slowing down the performance of old iPhones in order to preserve battery power. Many were upset, with lawsuits being filed, even by one woman right here in Glendale.

Violetta Mailyan sued Apple for $999,999,999,000, as reported by Patently Apple.

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In response to complaints like Mailyan’s, and in an effort to make nice with customers, Apple announced on December 28 that it was reducing the price of a battery replacement from $79 to $29. If you have an iPhone from 2016 or before, it is highly recommended that you replace your battery as soon as possible to increase the efficiency of your phone.

Despite this embarrassing situation for Apple, its shares are still valued at $173.03, meaning that if someone were to purchase a piece of Apple Inc. right now, they would have to pay that amount.

However, some analysts predict that Amazon—in fourth place, with a $566 billion valuation—is more likely to reach that milestone, due to its unprecedented and unfathomable growth as a result of new partnerships and product lines. Its shares have “increased in value by 58% since last year,” granting the CEO Jeff Bezos a $99 billion net worth, making him the richest man in the world, according to wealth correspondent Rupert Neate.

Nevertheless, Apple still remains a strong contender to become a trillion-dollar company due to “potential China growth, share buyback efforts, [and] recent tax reform,” according to a recent report by reputable financial magazine Barron’s.

While this may seem boring and irrelevant, it certainly is not. You may have learned about Rockefeller and Carnegie in your history classes, whose companies were groundbreaking and held valuations of billions of dollars. Apple is expected to be worth 100 times more than these giants, and it is all thanks to regular consumers like you.

So the next time that you talk to Siri, just imagine that you are a part of a revolutionary phenomenon that will go down in the history books and be taught about to students like you, centuries later.

 

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