Ap­ple gets ul­ti­mate re­venge on Michael Dell

The great­est busi­ness turn­around in the his­tory of the world hits an­other mile­stone, writes Michael Si­mon

iPad&iPhone user - - CONTENTS -

If the best re­venge is liv­ing well, then Tim Cook is stick­ing it to ev­ery­one. Ap­ple’s stock passed an­other sig­nif­i­cant mile­stone in Au­gust, be­com­ing the first com­pany in his­tory to top a mar­ket cap­i­tal­iza­tion of a tril­lion dol­lars, al­beit briefly. That’s a one with 12 ze­ros.

Of course, it wasn’t al­ways this rosy. On 29 Septem­ber 2000, Ap­ple’s stock dropped more than

50 per­cent, from $26 to $13, ef­fec­tively cut­ting its mar­ket cap­i­tal­iza­tion in half, to around $5 bil­lion, and it didn’t look good for the Mac maker. At the time it was hard to see Ap­ple re­cov­er­ing, but since that fate­ful day the stock has since split twice and soared to unimag­in­able lev­els.

To put its mar­ket cap in per­spec­tive, Ap­ple Inc is worth two Face­books, seven Net­flixes, 42 Twit­ters, and 53 Dells. If you re­mem­ber, Dell founder Michael Dell fa­mously quipped in 1997 that he would “shut (Ap­ple) down and give the money back to the share­hold­ers”. He’s since taken back the state­ment by say­ing he would shut down any com­pany that isn’t Dell, but it clearly in­spired Steve Jobs, who had this to say at the time: “We are go­ing to be sec­ond in lo­gis­tics and op­er­a­tions and the buy­ing ex­pe­ri­ence, to no-one – in­clud­ing Dell.”

While that’s been true for a while now, Ap­ple’s mile­stone is a sig­nif­i­cant one. Not only is the iPhone still sell­ing like hot cakes, Ap­ple has also shown sig­nif­i­cant growth in its Ser­vices and wear­ables cat­e­gories, two di­vi­sions that were vir­tu­ally nonex­is­tent just a few years ago.

Why this mat­ters: In the great scheme of things, it prob­a­bly doesn’t. Ap­ple will still re­lease new iPhones, iPads, and Ap­ple Watches in the au­tumn, and iOS 13 will still ar­rive next year. But it’s in­cred­i­ble to wit­ness a com­pany that was nearly worth­less just two decades years ago now be val­ued at over a tril­lion dol­lars.

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