Apple is a trillion dollar company. The race between the tech giants – Google, Amazon and Apple, to become the world’s first trillion dollar business was won a few days ago as Apple’s shares breached $207.05. But Apple isn’t profiting from iPad sales, which are flat or Mac profits, which are non-existent.
Apple is profiting from iPhone sales and the iPhone X, which has proven a winner.
Additionally, Apple has expressed an aspiration to move away from hardware and focus exclusively on their software offering. This comes as Apple announced – without warning – that it will stop supporting third-party applications in the App Store, putting more of a focus on high-quality developer focused and specialist applications. The App Store has become something of a minefield for customers, who are forced to rely on reviews and comparison websites to find what is most relevant and reliable. Apple is now attempting to become more of a “first stop,” for customers seeking the best solution to their problem.
While Apple has made history, it’s potentially more significant from an economic standpoint than it first appears. The world’s first million and billion-dollar companies controlled only a minute percentage of the world’s finance. There is currently approximately $90 trillion on earth, this means that Apple has over 1% of the available money on the planet. Once Amazon and Google inevitably reach the trillion dollar mark, tech stocks will become one of the most important wilderness of economic wealth on earth. Contrary to any conspiracy theories about business controlling too much money, this means that the stability of the world’s markets achieves a unique sense of control for the first time in history. If tech stocks can create their own sub-ecosystem within global economies, it means that political events have the potential to have less of an impact on share prices. Additionally, corrections within certain sectors can be buffeted from impacting upon industries as a whole.
The advent of the trillion dollar business will be argued for many years to come. However, it’s only a matter of time until many others join the ranks.