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Apple Becomes First $800 Billion Company

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Apple Inc. has become the first United States’ company with a market value of over $800 billion, according to Bloomberg.

Apple’s stock closed at $153.99 in New York on Tuesday after recoding an increase of 1 percent, taking its market capitalization to $803 billion.

The company’s shares have grown by 33 percent since the beginning of 2017.

The iPhone marker has become the first-ever publicly traded company to accomplish the milestone.

The record of highest market value was already held by Apple, it set up in February 2015 when its market capitalization reached $774.7 billion.

“It’s just reflective of how powerful a franchise it is. It may be the most powerful franchise in the country today,” said Rick Meckler, president of Liberty View Capital Management in Jersey City, New Jersey.

“Considering that it has a limited number of products, it has really dominated that market in a way that few companies have, and it’s been able to retain margins despite lots of competitors.”

Apple’s stock closed at $153.99 in New York on Tuesday after recoding an increase of 1 percent, taking its market capitalization to $803 billion.

 

In April 2016, Apple had reported an annual sales decline for the first time since 2001, largely down to a significant decrease in sales of the iPhone.

Apple’s-stockHowever, the introduction of new products such as the Apple Watch and AirPod wireless headphones and higher-margin services such as the iCloud and App Store helped the company recover from the debacle.

Apple will release three new iPhones later this year.

Experts believe that if Apple’s shares continued to increase at the same pace, its market cap will reach $1 trillion later this year.

Brian White of the investment firm Drexel Hamilton said the valuation “has been depressed for years as investors grew concerned that Apple would fall victim to the missteps of consumer electronic companies in of the past.”

Apple’s-StockHe added, though, that the company “has proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together.”

American multinational conglomerate Alphabet are Microsoft Inc. are the second and third most valuable companies with market values of $653 billion $532 billion respectively.