Breaking: Apple becomes first $1 trillion company

Today at 11:22 CDT, Apple has officially become the world’s first 1 trillion dollar company. Following a gradual increase in share prices, the market opened today at just over $200 a share and has now reached $207.05 a share. The small increase in share prices has been enough to tip Apple over the $1 trillion mark and now the market cap for Apple stands at $1.00 trillion.

The past hour has been terrifying for investors, with share prices rising and falling in seconds. At 10:43 CDT, we saw the greatest fall yet as shares dipped below $206 momentarily, before rising again to highs of $206.81. At 10:48, we saw a huge surge as the tech giant’s shares reached an all time high of $207.00 (just 5 cents short of the $1 trillion mark) before this fell down to as low as $206.09 a share.

Now though, the market has crossed the $1 trillion mark and has achieved its goal of $207.05 a share (which is what’s needed to cross the $1 trillion mark).

A number of factors have helped push Apple’s share prices to an all time high this week. Better than expected results from the 3rd financial quarter have helped stocks to gradually climb throughout the past couple of days and the expected release of three new iPhones this September has helped contribute to growth in share prices. As September approaches, we can expect a continuing trend with Apple shares expected to rise as new iPhones and iPads are unveiled.

Passing $1 trillion for Apple has been a huge achievement and shows that even with no new hardware releases at WWDC in June, the third quarter for Apple can still create major sales internationally. Other companies like Amazon and Alphabet (who own Google) are quickly catching up with Apple and may soon reach the $1 trillion mark, however the achievement of Apple reaching it so early in August (when the market is normally pretty stagnant) and before September’s event (when the market adjusts to new releases) shows Apple’s continued market dominance in software and hardware.

We can expect a continued surge in share prices today as it passes $1 trillion, before cooling down at just over $1.01 trillion later this week. The market will react positively if new leaks arrive before September’s event showing new iPhone/iPad designs. However, Apple also has to deal with Amazon and Alphabet. Both tech giants are nearing the $1 trillion mark and are more invested in a variety of services, rather than Apple’s continued investment in hardware and software. Apple must continue to invest in its iCloud and Apple Music services if it wants to retain dominance in areas like music streaming. It is yet to catch up with Google in the cloud storage market.

Next year, Apple is expected to unveil its new television/movies streaming service and as a result we could see a reduction in Netflix share prices and an increase in Apple share prices. The new streaming service would directly compete with existing companies like Netflix and Amazon which both offer on-demand television and movies streaming. Apple has in the past showed that it can take on market giants in seemingly crowded markets. For example, it directly took on Spotify with Apple Music and has now overtaken the music giant’s US subscriber account in just a few years. As a result, it’s no surprise that Apple wants to enter the television and movies streaming market in 2019 because it’s likely Apple can take control of that market providing it can get the license deals it would need to compete with other streaming services. Some production studios like Disney are already withdrawing from existing streaming services like Netflix, so Apple would need to also rely on its own exclusive content. The tech giant previously announced that it would be creating new TV with Oprah Winfrey in the near future and, as of right now, there is nowhere that Apple could host this content. Therefore, it’s more than likely we could see this new streaming service next year.

Regardless, the stock market is responding well to Apple’s new products (like the new 2018 MacBook Pros and the new 2018 iPad) however this could all change in September with the three new iPhones expected to be unveiled. While we can’t say for sure that they won’t all arrive on time, if there are delays like last year with iPhone X, the market will not respond well.

Stock prices correct as of 11:26 (CDT) on August 2, 2018. Share price estimations are not to be followed or used to invest/not invest in AAPL shares. All estimates are the author’s predictions only, based on current share prices, trading conditions and past/present stock market environments.