Apple overtook ExxonMobil to become the world’s most valuable company by market capitalization in August 2011.
Apple’s rise was powered by strong demand for the iPhone, iPad and Mac, together with growing expectations for future earnings. ExxonMobil had held the top position during much of the preceding period, when large oil companies benefited from high energy prices and enormous revenues.
Market capitalization measures the total market value of a company’s publicly traded equity. It differs from revenue, profit and total assets, so the company with the highest sales is not necessarily the company with the highest market cap.
Apple’s lead over ExxonMobil became an important symbol of the shift from traditional energy companies toward technology businesses. Apple later extended its dominance through services growth, new hardware categories and a large share-repurchase program.