A select number of companies are racing to become the worlds first trillion dollar company, and it seems that Apple is leading the race with a current value of around $869 billion.
The contenders include Apple, Amazon, Alphabet, and Facebook. Apples lead comes from its iPhone and iOS technologies that are around $140 billion more than Alphabet. This amazing fact truly expresses the genius of Steve Jobs. Job’s came back to Apple in 1997 when the company was close to bankruptcy and through some visionary leadership changed Apple’s direction.
What separates Apple from this prestigious title is 15%. Apple needs an extra 15% in share value to tip the scales in its favor. The latest Apple price was $172.26, which closed 2017 with a 47% growth in value.
What makes Apple so successful? According to Chief Investment Officer at Wedgewood partners David Rolfe, a $25bn fund management company, Apple collects a whopping 80% gross profit from its smartphone categories. According to Rolphe, global domination of a large market has not been as successful since the days of Rockefeller and Standard Oil.
US Investment Magazine Barron’s states that Apple is set for another prestigious year and expect it to pass the 41tn barrier during 2018. While Hargreaves Lansdown equity analyst George Salmon claims that it’s just a matter of time before one of the US-based tech companies crosses the trillion-dollar barrier, with Apple leading the pack. Since stock markets are volatile, anything can happen, and when it does it effects all traded companies, so if the market has a correction, all stocks will maintain their par, but the gap between them and the trillion dollar mark will eventually close.
In third place Microsoft with a $664 billion value, however, Amazon is continuing to surprise everyone, and this massive company could steal the day with its every growing logistics and online sales prowess. While Apple might be the wealthiest company, it’s Amazon’s Steve Bezos that holds the worlds richest man title with a whopping $99 billion value. In fact, so remarkable is Bezos holdings, that on the day Amazon posted its profits, Bezo’s value jumped by $10.3bn. Amazon is worth $566bn.
Facebook is not far off with a value of $520bn. However, when you compare the marketing mix of the leaders and the volatility of the markets, Apple is by far the best bet to win, since the par between Apple and Amazon is $300bn.
Having stated this, a recent report showed that all microchip processors from Intel, AMD and Arm were designed with a serious security flaw that affected the entire global economy. Basically, every computer and electronic platform that has a processor from one of these companies is infected. How this will affect the price value fo, Apple and Microsoft remain to be seen, the same goes for any company that baes its income on chip technology. While cloud-based or software based technologies are easier to replace, all they need to do is transfer their systems onto a new approved and reliable chip based server system. This is actually harder then it sounds, but it is easier than replacing an entire product categories inventory.