Apple became the very United States company to close a trading session with a market capitalization of more than $700 billion. During the Tuesday trading session, Apple’s shares rose 1.9 percent to $122.02, which gave the iPhone maker a market value of $710.7 billion, and it keeps climbing.
This is a huge number for CEO Tim Cook, who was initially considered to be inconsequential after succeeding Steve Jobs. Cook accredited the success of Apple to selling its expensive products to Chinese consumers, a segment that analysts describe as too price conscious.
In the final quarter of last year, Apple Inc. (NASDAQ:AAPL) sold more smartphones in China than any of its competitors. Ostensibly, Apple resisted pressures from investors to sell more affordable smartphones to this market. Cook stood by his decision by noting that China’s economic growth and widening middle class have provided Apple with majority opportunities and sales growth.
We can’t also forget Apple’s incredible holiday quarter report in which it sold a record number of iPhones and reported $18 billion in quarterly profit. These are likely notable results that Cook will be remembered for in corporate history.
Apple’s current valuation is nearly double that of the next three biggest companies listed in the S&P 500: Exxon Mobil ($382 billion), Berkshire Hathaway ($370 billion) and Google ($363 billion). It also easily beats Wal-Mart’s $283 billion market value. A market cap is determined by multiplying the firm’s shares and its stock prices.
Moving forward, will Apple eventually surpass the $1 trillion mark? Bloomberg News argued the possibility in a recent report.
“Given Apple’s powerful iPhone cycle, a big 4G ramp in China and the upcoming launch of Apple Watch in April, we believe there is still plenty to look forward to at Apple during this transformational cycle,” wrote Brian White, an analyst at Cantor Fitzgerald, wrote in a note to clients (via Bloomberg).
Apple is preparing to ship its new line of the Apple Watch. This product has generated much buzz and interest from consumers, media outlets and investors. It could also contribute to the legacy of Cook’s.
Apple buying power from solar firm
Apple will acquire an estimated $850 million of power from a new California solar farm in order to reduce its energy bill, the company announced Wednesday. The First Solar Inc. Plant will help supply electricity for the iPad maker’s new building in Silicon Valley and its other offices, 52 stores in the Golden State and Apple data center.
First Solar constructs solar panels and builds solar power plants, which are then used to sell power to companies. The construction of its 2,900 acre California Flats Solar Project is scheduled to begin in the middle of this year and be completed by the end of next year.
“We expect to have a very significant savings because we have a fixed price for the renewable energy, and there’s quite a difference between that price and the price of brown energy,” Cook said. “We know in Apple Inc. (NASDAQ:AAPL) that climate change is real. The time for talk is passed. The time for action is now.”
First Solar shares rose three percent in the extended trade after finishing up the session inching 4.77 percent higher at $48.54.
