Apple Becomes World’s First Trillion-Dollar Public-Traded Company
Apple has become the world’s first publicly traded company to be valued at US$1 trillion (FJ$2.10tr), the financial fruit of stylish technology that has redefined what to expect from gadgets. The milestone reached Thursday marks the latest triumph of a trendsetting company that two mavericks named Steve started in a Silicon Valley garage 42 years ago.
The achievement seemed unimaginable in 1997 when Apple teetered on the edge of bankruptcy, with its stock trading for less than US$1 (FJ$2.10), on a split-adjusted basis, and its market value dropping below $2 billion (FJ$4.19bn).
To survive, Apple brought back its once-exiled co-founder, Steve Jobs, as interim chief executive officer and turned to its archrival Microsoft for a $150 million (FJ$314.41m) cash infusion to help pay its bills.
If someone had dared to buy US$10,000 (FJ$20,960.50) worth of stock at that point of desperation, the investment would now be worth about US$2.6m (FJ$5.45m).
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, expected to be released in September.
Apple hit the US$1tr (FJ$2.10tr) mark when its shares reached US$207.04 (FJ$433.97) around midday in New York.
They rose to an all-time high of US$208.32 (FJ$436.65) before falling back slightly.
The shares are up around 23 per cent so far this year. Another company, Saudi Arabian Oil Co. could eclipse Apple if it goes through with plans for an initial public offering. Saudi officials have said the IPO would value Saudi Aramco, as the company is often called, at about US$2tr (FJ$4.19tr).
But until the initial public offering (IPO) is completed, Saudi Aramco’s actual value remains murky. Mr Jobs’ vision, showmanship and sense of 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 ignominious departure came after losing a power struggle with John Sculley, a former Pepsico executive who 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 with the administrative help of Ronald Wayne.
Mr 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.