Apple became the first publicly traded business to surpass a $1 trillion market capitalization in 2018 after reporting a record quarterly profit.
On August 2, 2018, Apple’s shares rose after the company announced results for its fiscal third quarter. The report included quarterly revenue of $53.3 billion and net income of $11.5 billion, helping push Apple’s market value above $1 trillion.
The valuation reflected more than iPhone unit sales. Investors also considered Apple’s pricing, services business, customer loyalty, and ability to generate cash. Apple had begun returning substantial sums to shareholders through dividends and share repurchases as well.
A market-cap milestone does not mean the company earned that amount in one year or held that amount in cash. It represents the market value of all outstanding shares at a particular share price, and it can change from minute to minute during trading.