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Apple has once again achieved a market valuation of over $3 trillion, according to a report from the Financial Times (FT).
Although Apple had previously reached the $3 trillion mark on the first trading day of 2022, its market value experienced a decline shortly afterward.
This year, however, Apple has managed to regain 45% of its market value, adding nearly $1 trillion and reclaiming its position above the $3 trillion landmark.
The report highlights that Apple’s market value had suffered alongside the broader market as a result of the Russian invasion of Ukraine. Additionally, production-line shutdowns in China caused by the COVID-19 outbreak also had an impact.
Improvements in Apple’s supply chain, investors’ interest in high-quality stocks, and the higher profit margins generated by the sales of high-end iPhones and services are cited as key factors contributing to Apple’s rise this year.
Furthermore, the report emphasizes Apple’s entry into a new product category with the recent launch of the Vision Pro augmented reality (AR) headset. It also highlights the company’s potential for growth in India and emerging markets where its current market share remains in single digits.
The report suggests that Apple’s latest ascent above the $3 trillion mark may hold more significance than the first occurrence, as it no longer benefits from the tailwinds of the pandemic-induced shift to remote work.
Apple first made history as the first publicly traded company to reach a $1 trillion market capitalization on August 2, 2018. Roughly two years later, on August 19, 2020, it achieved a $2 trillion valuation.
On January 3, 2022, Apple became the first U.S. company to surpass a market cap of $3 trillion, tripling its valuation in less than four years.
However, on January 3, 2023—the first trading day of the year—the company experienced a 4% decline in its stock price, resulting in its market cap falling below $2 trillion. This marked the first time since 2021 that Apple’s market valuation dropped below $2 trillion.
Other leading technology companies also faced declines during this period. The top 10 tech stocks collectively lost $4.6 trillion in market cap in 2022 due to consumer spending delays, supply chain issues, challenges posed by COVID-19 in China, job cuts, and negative news impacting market confidence.
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