Apple’s profitable year has taken a record-breaking turn as it becomes the first company to reach the coveted trillion-dollar valuation mark.
Tech giant Apple made history in the last week by becoming the world’s first trillion-dollar company.
Apple’s valuation hit the record-breaking number on Thursday, the day after it announced its Q3 financial results and a 17 percent rise in revenue. It’s no surprise that, after reporting what CEO Tim Cook described as “Apple’s best June quarter ever,” the company’s share prices would rise. It is surprising, however, that the rise would result in Apple hitting the trillion-dollar milestone ahead of competitors such as Amazon, Microsoft, and Google parent company Alphabet.
These competitors aren’t far behind, and there’s speculation about which company will hit the mark next. But Apple got there first, boding well for its reputation as it continues to grow – including through new retail design, a redeveloped App Store, and its ever-popular product releases.
Despite falling iPhone sales, lawsuits, and criticisms about the iPhone X, customers continue to anticipate the season of product releases ahead, and Cook attributes Apple’s strong Q3 results to “continued strong sales of iPhone, Services and Wearables.” He says that “we are very excited about the products and services in our pipeline”, a statement no doubt echoed by the innovative company’s tech-loving consumer base.
Apple’s strong financial growth proves right its optimistic predictions earlier this year. Its Q3 revenue came to US$53.3 billion, with quarterly earnings per diluted share up 40 percent to reach US$2.34. Sixty percent of that revenue came from international sales, a sign of Apple’s enormous global influence. Apple CFO Luca Maestri notes that “strong business performance drove revenue growth in each of our geographic segments, net income of US$11.5 billion, and operating cash flow of US$14.5 billion.”
The company predicts revenue of US$60-62 billion in the fourth quarter of 2018. Given its new status as a trillion-dollar conglomerate, this ambitious goal may not be far off the mark.