Apple became the first company to reach a $2 trillion market capitalization in August 2020.
Market capitalization is calculated by multiplying a company’s share price by its number of outstanding shares. Apple crossed the milestone during trading on August 19, 2020, after its stock price rose strongly during the technology-sector boom.
The achievement came only about two years after Apple became the first publicly traded U.S. company to reach $1 trillion, in August 2018. Its iPhone business, services division, wearables, and large installed customer base all contributed to investor confidence.
A common mix-up is confusing market capitalization with annual revenue or cash holdings. The $2 trillion figure described the total market value of Apple’s publicly traded equity, not the company’s sales or assets.