For the second time in its history, Apple has attained a $3 trillion valuation, driven by the persistent demand for its iPhones.
The tech behemoth crossed this significant benchmark as US markets kicked off on Friday.
Apple initially reached a $3 trillion market capitalization in January 2022 but couldn’t sustain it, as its shares subsequently dipped due to issues with the supply chain and lockdowns in China.
On Friday, Apple’s shares experienced a 1.7pc uptick, resulting in a record share price of $193. The company’s stock has already increased by 54pc in 2023 alone.
Apple’s first achievement of a $1 trillion valuation was in 2018, which escalated to $2 trillion just two years later.
This most recent rally in share price was preceded by positive assessments from analysts this week, suggesting that Apple’s stock has the potential for further growth. Citi analyst Atif Malik stated that Apple still maintains a “resilient market share” in comparison to Android smartphone competitors.
Malik added that revenues from software and “higher-margin services sales” might aid the company in further enhancing its profits.
In 2022, Apple posted revenues of $394bn and a net profit nearing $100bn.
Wedbush Securities analyst Dan Ives forecasted that the company’s valuation could reach as high as $4bn by 2022. According to Ives, investors have “severely underestimated” the potential sales of Apple’s iPhones as more consumers switch to newer models.
Ives also highlighted that the company’s new virtual reality product, the Vision Pro, could lead to the introduction of virtual reality and augmented reality App Store, thereby offering a “massive advantage” over competitors.
