The world’s iPhone maker, Apple, has gone down in history as the first public company in the world to be worth one trillion US Dollars.
On Thursday, Apple’s shares closed at the record high on 209.29 US Dollars per share in New York as investors rushed in to invest.
Apple released its financial results for the three months to June, recording better than the expected results, leading to a spike in shares as from Tuesday.
The company is now ahead of Amazon and Microsoft, becoming the first in history to hit one trillion US Dollars in valuation.
Following the introduction of the iPhone in 2007, Apple’s share value increased by 1,100 percent. The share value has also increased 50,000 percent since the company’s listing in 1980.
In 2006, Apple had sales of less than 20 billion US Dollars, making a profit of 2 billion US Dollars. In 2017, the sales had skyrocketed to 229 billion US Dollars with profits of 48.4 billion US Dollars, becoming the most profitable listed company in the United States of America.
Is it time to buy into Apple?
Despite the company hitting the one trillion US Dollar mark in valuation, some market analysts still hold the view that Apple’s shares aren’t expensive as compared to others.
The shares are currently trading at about 15 times the expected profits compared to 82 times at Amazon and 25 times at Microsoft.
Some analysts feel it is time for one to buy shares in the company given the company’s decision to set aside 100 billion US Dollars to buy back stock.
How Apple has been making money
Many people think that Apple has been making money because of selling more devices than other phone manufacturers. The truth is, Apple has been selling fewer devices as compared to other manufacturers, only that it has more expensive versions hence making more money per device.