Apple becomes first company to reach $3 trillion

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Apple becomes first company to reach $3 trillion

After an extraordinary rally in its shares during the Pandemic, Apple became the world's first $3 trillion company.

The iPhone maker's valuation cleared a little more than a year after it first surpassed $2 trillion.

Shares in the technology group, the world's largest publicly traded company, have swelled by 40 per cent over the past year. The company's shares rose to an all-time high of $182.88 in mid-day trading before falling lower on Monday. Apple's shares were $4.44, or 2.5 per cent higher at $182.01 at the close.

The world's most valuable company is the first to reach the milestone as investors bet that consumers will continue to shell out for expensive iPhones, MacBooks and other gadgets and services such as Apple TV and Apple Music.

Apple s march from $2 trillion to $3 trillion in market value took just over 16 months as its stock roared higher, leading a group of technology companies that relied heavily on tech during the coronaviruses lockdowns.

Apple, which was founded in 1976, is based in Cupertino, California and has been listed for more than four decades. It makes iPhones, which typically generate half of its sales, as well as iPad tablets and Mac computers. In recent months, investors have looked beyond the disruption caused by global supply chain issues and have looked at demand for its devices and services.

Bullish analysts are looking forward to a series of new releases from the company, including a set of augmented reality glasses. Speculation is also continuing about Apple's plans to start manufacturing cars despite the refusal of its executives to discuss its automotive ambitions.

Tim Cook, 61, has served Apple as Apple's chief executive for the past decade. Over the past two years, the company's shares have surged as it navigated setbacks dealt with during the Covid 19 crisis, including fluctuating demand and production line issues.

Cook warned that a chip shortage could worsen during the rest of the year, because of the fact that supply constraints had been greater than expected in the previous quarter.

Shortly after, Apple lost its status as the world's biggest listed business to Microsoft. The two companies have been in the market capitalisation rankings for more than a decade. Apple quickly regained its crown.

Dan Ives, a technology analyst at Wedbush, said Wall Street is beginning to appreciate the robust fundamentals that will boost it during 2022, as he praised another watershed moment for Apple. He has a target price of $200 for Apple's shares.

The company continues to prove the doubters wrong with the renaissance of growth story playing out in Cupertino, Ives wrote in a note, arguing that Apple's growing services division is the linchpin for the ascent of its shares.