Apple Inches Closer to $3 Trillion Valuation, Defying Previous Attempts

Apple Inc., under the leadership of CEO Tim Cook, is steadily approaching a historic $3 trillion market capitalization, signaling a potential breakthrough. Despite falling short in previous attempts, Apple’s shares are surging, with the company edging ever closer to the elusive milestone. As of Wednesday afternoon, Apple’s stock was up 0.5% to $188.93, requiring a close above $190.73 to achieve the feat.

Apple’s previous endeavor to reach a $3 trillion valuation came close on January 3, 2022, but ultimately fell short. Although the company’s shares surpassed their early 2022 levels this June and closed at another record high on Tuesday, the decline in Apple’s share count due to a robust buyback program hindered its valuation progress. Nonetheless, Apple aims to become the first U.S. company to break the $3 trillion mark.

Apple’s journey to this monumental valuation has been remarkable. Since its introduction in 2007 with the advent of the iPhone, the company’s market value has surged from $100 billion to the cusp of $3 trillion. While Apple took 7,874 trading days to reach a $500 billion market cap in 2012, it subsequently accelerated its growth, doubling its valuation in 1,617 days to achieve the $1 trillion milestone in 2018. The company’s progress to $3 trillion, however, has been comparatively slower, as it currently stands at 477 trading days since surpassing the $2.5 trillion mark.

Wedbush analyst Daniel Ives predicts even greater success for Apple, projecting a valuation of $3.5 trillion by fiscal 2025 or even $4 trillion in an optimistic scenario. Ives attributes this potential growth to the substantial opportunity presented by the upgrade cycle for iPhone 14 and the anticipated mini super cycle for iPhone 15, with a sizable portion of Apple’s loyal customer base yet to upgrade their devices in over four years. Additionally, Apple’s upcoming debut of the $3,499 Vision Pro headset in early 2024, though expensive, is expected to drive further adoption and potentially open new avenues in the virtual reality market.

As Apple continues its relentless pursuit of a $3 trillion valuation, investors and industry observers eagerly await the outcome, anticipating the company’s future market dominance and innovative ventures in the tech landscape.