Apple Achieves $4 Trillion Market Valuation
On Tuesday, Apple Inc. briefly ascended to a market valuation of $4 trillion, marking a historic moment as the third major technology firm to do so.
This achievement was driven by robust consumer demand for its latest iPhone models, which eased apprehensions regarding the company’s gradual advancement in the artificial intelligence sector, according to reports from Reuters.
The company’s stock peaked at $269.89, momentarily granting Apple a market cap of $4.005 trillion. However, it subsequently retreated, concluding the trading session with a modest uptick of 0.1 percent, resulting in a final valuation of $3.992 trillion.
Since the launch of new products on September 9, Apple’s shares have surged approximately 13 percent—a significant rebound that has positioned the stock into positive territory for the first time this year.
Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, remarked, “The iPhone constitutes over half of Apple’s profit and revenue; the more devices they distribute, the greater their ability to immerse users in their ecosystem,” a sentiment underscored ahead of this milestone.
Earlier this year, Apple’s shares faced challenges linked to intense competition in China and uncertainties regarding the navigational strategies concerning elevated U.S. tariffs on key Asian markets, notably China and India, which serve as significant manufacturing bases.
Nevertheless, the recent launch of new smartphones, including the iPhone 17 line and the iPhone Air, successfully attracted customers across markets from Beijing to Moscow shortly after their debut. The company has managed to absorb the elevated costs associated with tariffs.
Industry analysts suggested that the slim design of the iPhone Air could strategically deflect competition from rivals like Samsung Electronics.
Furthermore, preliminary sales data from research firm Counterpoint indicated that the iPhone 17 outsold its predecessor by 14 percent in both the U.S. and Chinese markets.
Brokerage firm Evercore ISI anticipates that the heightened demand for Apple’s latest offerings will enable the company to surpass market expectations for the quarter concluding in September, while also issuing optimistic projections for the subsequent quarter ending in December.
Apple joins Nvidia and Microsoft as the only entities to achieve a $4 trillion market valuation, with Nvidia leading the pack at nearly $5 trillion.
Concerns have surfaced regarding Apple’s cautious stance on artificial intelligence, with fears that it may miss out on what could be one of the industry’s most significant growth opportunities in decades. Recent reports suggest a trend of senior AI executives departing for Meta.
The company’s rollout of its Apple Intelligence suite, which includes a much-anticipated integration with ChatGPT, has been characterized by delays, notably the AI enhancement for its voice assistant, Siri, which is not expected until next year.
Reports indicate that Apple is exploring collaborations with leading AI firms, including Alphabet’s Gemini AI, Anthropic, and OpenAI.
Zaccarelli further commented, “The absence of a well-defined artificial intelligence strategy appears to weigh on the stock. If Apple can devise a means to incorporate AI that captivates consumers, it could transform the company fundamentally.”
In its most recent financial disclosures, Apple reported its strongest quarterly results in several years during the April-June period, achieving double-digit growth across key sectors and exceeding analysts’ projections. The company is scheduled to unveil its fourth-quarter results on October 30.
Currently, Apple’s stock is trading at a price-to-earnings ratio of 33 based on projections for the coming year, which is considerably higher than the Nasdaq 100’s ratio of 27, according to data compiled by LSEG.
Despite this, Apple’s shares have only risen by 7 percent this year, markedly trailing behind the tech-heavy Nasdaq’s impressive 23 percent gain.
Source link: Today.thefinancialexpress.com.bd.
