On Monday, Apple Inc. crossed another trillion-dollar milestone when it became the first publicly-traded company to be worth $3 trillion. Experts now wonder what it will take for the company to grow even more.
It is not the first time Apple Inc. made headlines by reaching a huge market capitalization. The iPhone developer became the first trillion-dollar company in August 2018 and reached $2 trillion two years later. The stock reached a high of $182.88 on Monday, gaining $90 billion in value to put it over the top. That gain was more than the bottom 400 companies in the S&P 500 index. Much of the hype driving the company higher can be attributed to some analysts’ optimistic outlook in 2022. New products and services are rumored to be in the works. The company spent $21.9 billion on research and development in 2021, four times more than Microsoft.
The Company Running the Future
Apple Inc.’s existing products have continued to be in popular demand for years, and it is expected to increase revenues and profits in the new year. The company hopes to have fewer supply chain issues that will slow down its iPhone and MacBook business. In addition, its in-house silicon chips have helped lessen the effect of the global semiconductor shortage that delayed many software companies in 2021.
It will also rely on other accessories like the watch and AirPods to attract more people to its ecosystem. To keep users entertained, Apple has also ramped up its services business. The company offers subscription bundles that include services for music and film streaming, news, gaming, and fitness.
New Ideas
To maintain this success, some speculate the company will likely introduce new products that have been rumored to be in the works for years. One of them could be a mixed reality headset to compete with Meta Platforms Inc.’s Oculus VR devices. It is also speculated that an electric self-driving car could be on the way. It would join other electric vehicle makers like the startup Rivian, Tesla, General Motors, and Ford in the automotive space.
Apple may be forced to create its own search engine to compete with Google. A lawsuit claims that Google is paying the company to remain as the default search engine on Safari, Apple’s web browser for its devices. The case could find both companies violating U.S. antitrust laws for having a supposed non-compete agreement in the internet search business.
Written by Chiagozie Onyewuchi
Edited by Cathy Milne-Ware
Sources:
Business Insider: Apple becomes the first US company to cross the $3 trillion market cap threshold; by Matthew Fox
Yahoo! Finance: Apple’s road to $4 trillion starts with its rumored headset and Apple car; by Daniel Howley
MacRumors: Google Basically Pays Apple to Stay Out of the Search Engine Business, Class Action Lawsuit Alleges; by Tim Hardwick
Featured and Top Image Courtesy of Courtesy of ajay_suresh ’s Flickr Page – Creative Commons License
Inset Image Courtesy of Jay Rogers’ Flickr Page – Creative Commons License
One thought on “Apple Continues Its Rapid Rise in Growth”
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