Apple becomes first US$1 trillion firm
SAN FRANCISCO Apple has become the world’s first publicly traded U.s.-based company to be valued at US$1 trillion.
The milestone marks the triumph of stylish technology that has redefined what we expect from our gadgets ever since two mavericks named Steve started the company 42 years ago.
The peak reached Thursday seemed unimaginable in 1997 when Apple teetered on the edge of bankruptcy, with its stock trading for less than US$1. To survive, Apple brought back its once-exiled co-founder, Steve Jobs, as interim CEO and turned to its archrival Microsoft for a Us$150-million cash infusion to help pay its bills.
Jobs eventually introduced popular products such as the ipod and iphone that subsequently drove Apple’s rise. The stock has been surging this week as anticipation mounts for the next generation of iphone, set for a September release.
Apple hit the US$1 trillion mark when its shares reached a record high of US$207.05 around midday in New York. The shares are up 22 per cent so far this year. Petrochina Co. briefly crossed that valuation in late 2007 but slumped quickly as oil prices collapsed in the financial crisis. Other tech giants are not far behind Apple today, with Amazon.com Inc., Alphabet Inc. and Microsoft Corp. worth more than US$800 billion each.
Jobs’ vision and style propelled Apple’s comeback. But it might not have happened if he hadn’t evolved into a more mature leader after his exit from the company in 1985. His departure came after losing a power struggle with John Sculley, a former Pepsico executive whom he recruited to become Apple’s CEO in 1983 — seven years after he and his geeky friend Steve Wozniak teamed up to start the company.
Jobs remained mercurial when he returned to Apple, but he had also become more thoughtful and adept at spotting talent that would help him create a revolutionary innovation factory. One of his biggest coups came in 1998 when he lured Tim Cook away from Compaq Computer at a time when Apple’s survival remained in doubt.