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Apple reaches US$1 trillion in stock market valuation

03 August 2018

Its shares then hit a record high of $207.05, crowning a decade-long rise fueled by the ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications. "There isn't another company out there that executes at Apple's level of detail, at their fit-and-finish".

Earlier this week, the company released its third-quarter earnings report.

Volume on United States exchanges was 6.66 billion shares, compared with the 6.25 billion-share average over the last 20 trading days.

Tim Cook faced scepticism when he took over as chief executive in 2011 from ailing iconic co-founder Steve Jobs.

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Five years ago, Apple was spending about US$4b a year on research and development, or about 3 per cent of its sales. After launching the iPhone - arguably its most famous product - in 2007, Apple now churns out over 40 million of the devices every quarter, helping it rake in $254.63 billion in revenue previous year.

"It's simply a testimony to how they've become a fabric of our lives, and it's also a testimony to Steve Jobs' vision", says analyst Gene Munster.

Apple isn't safely ahead of everyone else yet, Amazon is now valued at around 900 billion and is closing in on a trillion steadily as well. "He would've come in the next day and said, 'How are we going to make attractive products?' I don't think it would change anything".

While Apple is without any doubts ahead of other US-based high-tech companies in terms of market cap, it is not the world's most expensive firm per se. This valuation makes Apple more valuable than the GDP of all but 26 countries, according to data from the CIA Factbook. "I guess you wouldn't have put your money on Apple being the victor prior to the iPhone".

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The logo of Apple is seen on an Apple Store in NY. The company faced a backlash when it replaced Google Maps on the iPhone with a buggy and unreliable Apple Maps app in 2012.

It is a market development that has been in the pipeline for well over a year.

Apple came of age of age at such a speed that it surpassed a giant like Exxon, which is still a very profitable oil company.

Robert Galbraith / Reuters Apple CEO Steve Jobs gestures during his unveiling of the iPhone 4 in San Francisco, Calif., June 7, 2010.

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Apple has been credited with giving rise to lifestyles centered around mobile apps for seemingly everything from games and messaging to ordering food or summoning auto rides. It's always tough to assess the return on R&D investment, and it's doubly hard for Apple.

Apple reaches US$1 trillion in stock market valuation