Apple became the first US company with a market value of more US$800bn as investors bet the next iPhone will spur a resurgence in sales.
The stock rose 1% on Tuesday to close at $153,99 in New York, giving it a market capitalisation of about $803bn — that’s R10,9 trillion at time of publication.
The shares have gained 33% since the start of the year, helped by a buyback programme that CEO Tim Cook extended to total $210bn last week, from $175bn last year.
Apple’s rise to the top of the world’s largest equity market highlights the emergence of mobile technology and the relative decline of the oil industry in recent years.
Exxon Mobil’s value peaked in the fall of 2007, when oil prices climbed toward $100/barrel. In November of that year, PetroChina briefly became the first global company with a market capitalisation of more than $1 trillion.
Apple’s revenue grew in the most recent fiscal quarter even as iPhone unit sales fell. Cook has sought to diversify the Cupertino, California-based company away from the smartphone, emphasising higher-margin services such as the App Store and iCloud, and introducing new products such as the Apple Watch and AirPod wireless headphones.
After a modest upgrade to the iPhone last year, Apple will unveil three new iPhones later this year to coincide with the 10-year anniversary of the first model.
The updated range will include a new top-of-the-line handset with an overhauled look, people familiar with the plan said in April. Apple is testing a new type of screen, curved glass and stainless steel materials, and more advanced cameras for that redesigned device. — (c) 2017 Bloomberg LP