Apple has made new inroads by reaching the symbolic milestone of $700 billion of market capitalization for the first time. It is also major milestone for the CEO Tim Cook who saw the Apple through doubling its market cap in just three years. Tim Cook held the reigns of Apple in the August 2011 when its founder Steve Jobs officially stepped down from his post just two months before his sad demise due to cancer.
Apple Stocks Shows Advance Rise With This News
Apples stocks are getting stronger with each successful measure used by the company. In September after the launch of widely successful iPhone 6 and iPhone 6 Plus the Apples share shown a record jump of 21%. The iPhone range has long been the principal company’s earning juggernaut. But Apple is now ready to bring new products and services for the first time in many years.
The technology market is buzzed with the arrival of the much-hyped Apple Watch and the new Apple Pay which mobile payment solutions. Apple Pay service became available in October while Apple Watch which is eagerly awaited by the consumers is set to debut for sale in 2015. Market analysts are divided regarding the potential of the popularity of the new wearable device but Apple shares are still going higher regardless of it.
Better Products and Service Behind Rising Valuation
The latest versions of iPhone released by the Apple a few months back have been driving up the company’s value. It even posted a record opening weekend through selling more than 10 million units. Market Analysts are predicting that the Apple would continue to sell its iPhone at an aggressive pace in the upcoming holiday season. Market analyst forecasts that Apple would be able to sell around 71.5 million iPhones in its fourth quarter.
Microsoft Still Hold The Record For Highest Market Cap
Apple has become the first S&P 500 company to reach the $700 billion market capitalization mark. However it still has a long way to go to become the most valuable company of all time. At present this feat is in the name of Microsoft which at its market cap peak was of $613 billion in 1999, on an inflation-adjusted basis it converts into a whopping $874 billion in 2014.
Apple Market Cap Bigger than GDP’s of 19 Countries
Currently the Apple’s market cap is much higher than the gross domestic product (GDP) of as many as 19 countries in the world. According to the data released by the World Bank on GDP, it appears that Apple Inc is just behind the Saudia Arabia which has a GDP of $745 Billion and it is ahead of Switzerland which just has GDP of 650 million.
Apple Record Seem Cheap Through Historic Measure
When Microsoft was at its peak it was trading at 72 times earning according to the Nasdaq and Factset data. But Apple’s price-to-earnings ratio is just 18 even though Apple’s revenue is increasing by a healthy 15 % and its earnings by 20%.