Money, markets, and Big Tech are inside.
Ivan covers Big Tech, India, policy, and security for the magazine. That is a mixed bag. He likes to say "Bleh." Ivan covers Big Tech, India, policy, and security for the magazine. That is a mixed bag. He likes to say "Bleh."
Apple became the first US company to hit a $3 trillion market cap. Within a few hours, the firm's stock valuation had fallen to $2.99 trillion.
The Apple product has been the main driver of the tech giant's bottom line over the years. The services business has become an important contributor. Services generated $18.2 billion in revenue for Apple in the last quarter.
Last week, Daniel Ives, MD of investment firm Wedbush, said in an investor note that Apple's services business could be worth 1.5 trillion dollars.
The linchpin to Apple's valuation re-rating is its Services business which we believe is worth 1.5 trillion in the eyes of the Street, and its flagship hardware ecosystem which is in the midst of its strongest product cycle in over a decade. The Services business is poised to reach $100 billion in revenue by the year 2024.
The company had revenue of $68.2 billion in services for the year. The $100 billion revenue prediction seems doable given its growth record.
Over the years, Apple has introduced many products to its services offering, including App Store, iCloud, Apple Music, Apple TV+, and Apple Card.
The firm has a revenue of $366 billion but its shares are trading at 30 times that. Hong Kong's GDP in 2020 was $346 billion.
Competitors have a long way to go before they join the $3 trillion club. Microsoft is the closest with a market cap of $2.5 trillion, while Amazon and Google are not close.
January 4, 2022.
Back to the beginning.
