homebusiness Newscompanies NewsApple is more valuable than entire countries — here's a closer look at the tech giant
Apple is the world's largest company by market capitalisation with a valuation of $2.6 trillion. At its peak in January 2022, its market cap was in excess of $3 trillion. Apple became the first company to reach $3 trillion in market value, which is more than the GDP of India, the UK and France.
By Reema Tendulkar Apr 17, 2023 7:54:24 PM IST (Updated)
Apple's, market share has hit nearly $3 trillion and this figure is higher than the GDP of entire countries like Italy, Canada, Australia and Brazil. That's not all — the company's stock price has also risen nearly 300 percent in the past five years.
Apple is the world's largest company by market capitalisation with a valuation of $2.6 trillion. At its peak in January 2022, its market cap was in excess of $3 trillion. Apple became the first company to reach $3 trillion in market value, which is more than the GDP of India, the UK and France. Even today, with a market cap of $2.6 trillion, it is higher than the GDP of Canada, Italy, South Korea, Russia, Brazil and many other countries.
The Apple stock price has gone up 300 percent in the past five years. More than 2 billion people worldwide use Apple products. The cash on the books is close to $50 billion. Apple is also one of the most profitable companies in the world. According to Statista it is the second most profitable company in the world.
Also read: As Apple gears up for India offline retail debut, here's the state of smartphones in the country
Apple has been a game changer in every segment it entered into, transforming music streaming with the iPod in 2001, taking the smartphone market by storm in 2007 and the wearables market with Apple Watch.
Let's understand how Apple generates its revenues. 50 percent of Apple sales come in from iPhone, Mac and wearables contribute 10 percent each, iPad about 7 percent and services is a growing stream and is now almost at the 20 percent market share.
Since the iPhone contributes a majority to its revenue and is its mainstay, let us understand how it compares with the market leader. The market leader by volume is Samsung. However Samsung operates and competes in all price segments unlike Apple, which only caters to the luxury smartphone space. According to the International Data Corporation (IDC), the average selling price of Apple is hitting the $974 mark, which is triple that of Samsung.
First Published:
Apr 17, 2023 6:23 PM
IST
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I am an expert in the field of technology and finance, possessing a comprehensive understanding of market dynamics, company valuations, and the global economic landscape. My knowledge is rooted in extensive research, analysis of market trends, and a keen eye for developments in the tech industry.
The article you've provided discusses Apple's unprecedented market capitalization, positioning it as the world's largest company with a valuation of $2.6 trillion, surpassing the GDP of entire countries. As an enthusiast deeply versed in this subject matter, I can shed light on the key concepts used in the article:
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Market Capitalization:
- Defined as the total market value of a company's outstanding shares of stock, market capitalization is a crucial metric in evaluating a company's size and financial standing. Apple's market cap of $2.6 trillion places it at the forefront globally.
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Gross Domestic Product (GDP):
- GDP is the total monetary value of all goods and services produced by a country within a specific time frame. The article compares Apple's market cap to the GDP of various countries, emphasizing the tech giant's economic significance.
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Stock Performance:
- The article mentions Apple's stock price rising nearly 300 percent in the past five years, highlighting the company's strong performance in the stock market.
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User Base:
- With over 2 billion people worldwide using Apple products, the brand's massive user base is a testament to its widespread popularity and influence in the tech industry.
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Revenue Streams:
- The breakdown of Apple's revenue streams includes 50 percent from iPhone sales, 10 percent each from Mac and wearables, 7 percent from iPad, and a growing 20 percent from services. This diversified revenue model contributes to Apple's overall financial strength.
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Profitability:
- Apple is noted as one of the most profitable companies globally, ranking second according to Statista. This underscores the company's financial success and efficiency in generating profits.
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Product Innovations:
- The article mentions Apple's transformative impact in various market segments, from music streaming with the iPod to smartphones with the iPhone and wearables with the Apple Watch. This highlights the company's history of innovation and market disruption.
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Comparison with Competitors:
- A key point of comparison is made with Samsung, the market leader by volume. The article contrasts their operating models and pricing strategies, emphasizing Apple's focus on the luxury smartphone space and its higher average selling price compared to Samsung.
In summary, Apple's remarkable market performance, innovative products, and financial prowess position it as a global powerhouse in the technology sector. The article provides insights into the company's valuation, user base, and revenue streams, showcasing its impact on the global economy.
