Apple’s (AAPL) market value hit $3 trillion on Friday, becoming the first publicly traded company to hit that milestone twice. The moment came when shares of Apple broke through $190.74 earlier in the day. The iPhone maker originally surpassed the $3 trillion mark in January 2022.
The milestone follows a racy first half of 2023 for tech stocks, in which the Nasdaq is up 30% while Apple stock is up more than 45%%.
Wall Street and Silicon Valley are all caught up in the generative AI hype that began with the release of OpenAI’s ChatGPT in November 2022. But companies like Microsoft (MSFT), Google (GOOG, GOOGL), and Nvidia (NVDA) can. While Apple notes that their work on AI is at least partially driving stock prices higher, Apple has largely refrained from any mention kept away from AI.
Instead, the company’s greatest successes have come from its ability to navigate the supply chain crisis caused by China’s COVID lockdowns and the resilience of its iPhone business — and its promise to enter a new market with its Vision Pro for AR/VR headsets.
“This is ultimately a safe haven company for investors, regardless of the macro economy you’re in,” CFRA vice president and technology equity analyst Angelo Zino told Yahoo Finance Live “It’s a name we continue to live up to and a name we continue to say to investors, ‘Don’t necessarily trade, it’s a name you want to invest in for the long term.'”
Apple, like other tech companies, has faced difficult comparisons in recent earnings seasons as the company digested the massive spike in sales of iPhones, Mac computers, and iPads during the pandemic.
And while Mac and iPad sales were lower last quarter than the same period in 2022, iPhone sales skyrocketed year over year.
Market champion: Apple CEO Tim Cook speaks during a new product announcement at Apple’s campus June 5 in Cupertino, Calif. (AP Photo/Jeff Chiu)
In June, Apple unveiled a 15-inch version of its popular MacBook Air that could help boost Mac sales going forward, especially as the important back-to-school shopping season begins. But iPad sales could continue to pose problems in the future.
The story goes on
The Cupertino-based company is also taking a handful of new directions that could define its future. Its most ambitious Vision Pro headset is slated to launch in early 2024 for a staggering $3,499.
But Apple will likely bring that price down to a more affordable range to ensure the average iPhone owner can afford the headset. That could open up a whole new product category for the company, although it’s difficult to match the peaks in the iPhone business.
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Perhaps even more important are Apple’s moves into the Indian market.
The company opened its first store in the country in April, signaling its commitment to expanding its market base in the world’s most populous country. However, Apple’s products are still prohibitively expensive for the vast majority of Indians, meaning revenue growth is likely to be slow.
Apple is also in the process of shifting some of its manufacturing capacity to India to reduce its reliance on China as the main hub for manufacturing iPhones and other products.
The effort comes as geopolitical tensions between the US and China put Apple in a difficult position to placate two rival countries while continuing to run a thriving business. A move to India and other regions of Asia could alleviate some of these problems.
Daniel Howley is the Tech Editor at Yahoo Finance. He has been reporting on the technology industry since 2011. You can follow him on Twitter @DanielHowley.
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