In the midst of freefalling markets, Apple was briefly the most valuable company in the world, then it was overtaken by Exxon Mobil again. Still, it will come as delicious news to Steve Jobs and his entire team. Just over a decade ago, the company was being maligned. Today, they own everything worth owning in the tech space. By SIPHO HLONGWANE.
At the close of trade, the stocks stood thus: XOM $348.32B, APPL $346.74B. But for most of 10 August’s afternoon trading, Apple was trading at more than $367 a share, giving the company a valuation of $341 billion, at that moment just slightly more than Exxon Mobil.
Here’s the stunning bit, in case you’re in London and your memory got nicked along with your TV, Exxon Mobil is an oil and gas company. That is pretty much the lifeblood of today’s global economy. Apple makes consumer electronics – a middle-class luxury. But before you shout, “bubble”, consider the tech company’s revenues for last year: $65.23 billion. This with no long-term debt and little negative market outlook in the long-term. Some say it will become a trillion-dollar company not too far in the future.
Towards the end of July this year, just when the Congressional debate on the debt ceiling was heating up, Apple had more money in cash and marketable securities than the US government.
Apple’s share of the smartphone market in the US grew from 25.2% in the three-month period ending in February to 26.6% for the end of the May. Its share of the tablet market is a whopping 61% and is projected to grow at least until 2015.
Not bad for a company that Wired Magazine called “beleaguered” in 1997. Not bad at all. DM
While we have your attention...
An increasingly rare commodity, quality independent journalism costs money - though not nearly as much as its absence.
Every article, every day, is our contribution to Defending Truth in South Africa. If you would like to join us on this mission, you could do much worse than support Daily Maverick's quest by becoming a Maverick Insider.
Click here to become a Maverick Insider and get a closer look at the Truth.
"We spend the first year of a child's life teaching it to walk and talk and the rest of its life to shut up and sit down. There's something wrong there." ~ Neil deGrasse Tyson