Apple Inc. is perhaps the most discussed tech company in the world today among investors, due to the quickly strengthening position of its earnings report and, hence, stock value. However, now analysts have begun to see the company in a much different light than they see all the other companies operating in the tech industry; it has made them conclude that the same market laws, perhaps, don’t apply to Apple Inc. (NASDAQ:AAPL) the way they do to its competitors in the market.
It is no secret that Apple Inc. has surpassed Google and even Microsoft (once the market leader in the tech industry) as far as its market capitalization is concerned. The iPhone maker has come very close to crossing the $700 billion mark in terms of market capitalization, and is only growing and expanding exponentially day by day. The only company to come close to Apple is Exxon Mobil, which boasts a market capitalization of $375 billion.
For a company that large, it is important to assess the mechanism it has employed to reach it. No other company has been able to reach the size that Apple Inc. has achieved in just 37 years of existence (38 on April 1st, 2015), and, according to experts, that says volumes about Apple’s unique nature.
According to financial analysts, the major factor that has been contributing to the exponential growth of Apple Inc. is the high earnings and revenue figures that the company enjoys. In Q4 2014, the company boasted it’s highest ever earnings figure of $18 billion for the quarter in its reports released in January 2015, and Apple only seems to be growing its revenues even further.
Even the strengthening value of the dollar failed to hinder its growth. In its Q4 2014 earnings report, Apple Inc., contrary to expert predictions and the general trend in the market, did not even mention the strengthening figure of the dollar as a factor in its revenue and earnings figure. The company enjoys a significant market in China for its smartphones, and the rising value of the dollar, it was expected, would have had some effect on its revenues. However, that did not happen.
And Apple is keeping investors very happy indeed. The company is one of the very few that pays out timely dividends to its investors every year from the profits for the same. Last year, the company paid out over $57 billion to investors, either buying back their shares or in the form of dividends, and still has $180 billion to spare after adjustments.
Perhaps, one of the key identifiers for the company is its will to innovate and provide people with exactly what they want, without making any compromises to quality. Apple Inc. (NASDAQ:AAPL) products are considered flawless in design, and, hence, boast a very high price tag. But, the bargain is profitable, as users have become loyal to the brand. Hence, sales for Apple devices are consistently and continuously on the rise.
With a company this strong (a rarity in the tech industry), crossing the $700 billion mark in market cap is very much justified. In fact, according to one investor, the company can easily cross $1.4 trillion value if it cuts down on the cost factor and localizes its manufacturing process.
