First hitting a trillion-dollar market capitalization in 2018, Apple set another record in 2020 when it became the first publicly traded company to reach a $2 trillion market cap. Now, almost three years later, the tech giant’s share price has nudged beyond the $3 trillion mark.
Or to be more specific, as reported by Forbes and other outlets, Friday morning trading saw the iPhone maker’s shares climb more than 1% to a new all-time high of $192, representing an almost 55% climb since the start of 2023. It also meant that Apple reached $3.02 trillion in value.
It isn’t the first time Apple has reached that milestone, as it briefly crossed the threshold in January last year. Nonetheless, the Cupertino giant continues to be the only $3 trillion company to have ever existed.
So, what has contributed to such a monumental landmark achievement? The introduction of Vision Pro, Apple’s first venture into an entirely new market since the Apple Watch in 2015, was a notable event. However, Bloomberg’s Mark Gurman does not believe this product has significantly influenced Apple’s market cap milestone.
The Vision Pro, with a starting price of $3,500 and technology still under refinement, appeals primarily to early adopters like software developers, Apple enthusiasts, and mixed-reality advocates. Also, users have to carry an external battery pack, and Apple has yet to articulate a convincing use case for the headset.
Apple anticipates a slow uptake for the headset, forecasting sales of about 900,000 units in its first year, which would contribute a few billion dollars in revenue. Thus, Gurman argues, it’s not the Vision Pro that has pushed Apple towards the $3 trillion threshold.
He attributes the company’s soaring value more to the ecosystem, which locks in users, making it hard for them to switch to other brands. While Vision Pro may pique investor interest, many are likely more keen on the iPhone 15 lineup.
Less thrilling perhaps, but analysts expect a strong upgrade cycle this year as users with older models like the iPhone 11 and 12 may find compelling reasons to upgrade.