Apple’s 2018 achievement made it the first public company valued at $1 trillion. The milestone was reached when Apple’s share price rose enough on August 2, 2018 for the company’s outstanding shares to total approximately one trillion dollars in market value.
Market capitalization is often abbreviated as market cap. It differs from enterprise value, which also considers debt, cash, and other claims on a business. It also differs from revenue, profit, and the value of physical property.
Apple’s milestone was powered by the global success of the iPhone and by the company’s integrated ecosystem of devices and services. Its large installed customer base encouraged repeat purchases and generated recurring income from digital services.
The phrase “first public company” is important because private companies can receive very large valuations in funding rounds without having publicly traded shares. Apple’s milestone was visible through a public exchange and could be calculated from its quoted share price and share count.