Apple becomes 1st US company to hit $2 trillion in market value

NEW YORK — Apple on Wednesday became the first US company to reach $2 trillion in market value in the latest demonstration of how tech giants have benefited from the upheaval of the coronavirus.

The iPhone maker attained the distinction in mid-morning trading and was up 1 per cent at $467.02 near 15:20 GMT. The company had previously become the first giant to hit $1 trillion in market value in March 2018.

Apple is followed by other technology companies, including Amazon, Microsoft and Google parent Alphabet, all of which now have more than $1 trillion in market value.

Shares in Apple have roughly doubled from March lows, an astonishing performance which has lifted chief executive Tim Cook's net worth to $1 billion for the first time, according to a Bloomberg Billionaires Index calculation.

Even as other large tech firms have shot higher on robust demand during lockdowns, Apple has outpaced its rivals by delivering strong sales of gadgetry including wearables and tablets, along with new apps and services which have gained ground during the global health crisis.

In the past quarter ending in June, Apple reported profits climbed 8 per cent to $11.2 billion and revenues jumped 11 per cent to $59.7 billion.

Apple's rise comes amid a broader rally in technology shares as employees around the country shift to working at home amid the coronavirus pandemic and social distancing protocols. 

The tech-rich Nasdaq has hit records more than 30 times in 2020, including on Tuesday.

A major factor in Apple's success has been leadership from Cook, who took over just ahead of the death of Steve Jobs in 2011.

"He didn't invent anything, but what he has done is keep a firm hand on the tiller, steering the ship and keeping the culture intact," said analyst Laura Martin at Needham & Company.

"He deserves a lot of credit for making the most out of Steve Jobs's inventions."

Apple's rise comes amid a broader rally in technology shares as employees around the country shift to working at home amid the coronavirus pandemic and social distancing protocols.

In the most recent quarter, Apple enjoyed a modest rise in smartphone revenue and robust increases in sales of iPads and Mac computers amid elevated demand for remote education and work-from-home buyers.

The company also benefited from services such as digital payments and streaming and from increased sales in smartwatches as interest in health and fitness applications rises.