Apple reached its first market valuation of more than $4 trillion (£3 trillion) on Tuesday, making it the third company in history to attain that number, due to the high demand for its recent iPhones.
The share price of Apple has surged more than 50 percent since April, when the company hit a low point due to the launch of the new products.
Chief Investment Officer for Northlight Asset Management, Chris Zaccarelli, said that “The iPhone accounts for over half of Apple’s profit and revenue, and the more phones they can get into the hands of people, the more they can drive people into their ecosystem.”
Shares of Apple had earlier faltered this year due to fears of stiff competition in China and the way it would manage the high US tariffs on the Asian economies like China and India, its principal production ports.
The most recent smartphones, the iPhone 17 collection, have already regained the loyalty of customers in Beijing to Moscow, and the company has not incurred tariff costs to consumers but has passed these expenses on.
According to data provided by research company Counterpoint, analysts indicated that the slim design of the iPhone Air will enable the company to withstand other market competitors like Samsung Electronics, and initial sales of the iPhone 17 showed a 14 percent increase over its predecessor in the US and China.
Therefore, the third company to reach the $4 trillion level is Apple, after Nvidia and Microsoft. Nvidia followed in July as the chip designer was able to ride the AI spending wave; it is already the market leader with over $4.5 trillion.
Similarly, Microsoft reached the $4 trillion value a few weeks later in July. It regained its entry into the $4 trillion club on Tuesday after it announced a transaction with OpenAI to enable the ChatGPT maker to transform itself into a for-profit corporation, following a subsequent fall in its share price.
As OpenAI is currently worth $500 billion, Microsoft has a 27 percent interest in it, which is worth over $100 billion.
As Microsoft has vigorously sought growth in the field of AI, Apple has been conservative, which has sparked fears that it might miss the opportunity to capitalize on what would be possibly the largest driver of growth catalyst in decades.
Recent reports also show that the company is losing some of its senior artificial intelligence leaders to Meta.
Meanwhile, Apple has posted the highest quarterly performance in years in the April-June period, and a double-digit growth in major segments, and its projections were also higher than its analysts.
The firm is likely to declare its fourth-quarter earnings on Thursday when analysts believe its much-lucrative services segment, which consists of iCloud and Apple Pay, will cross more than $100 billion in revenue.
The ongoing resilience in the technology industry and prospects of a further reduction of US interest rates only contributed to Wall Street soaring to new heights.
Dow and the Nasdaq Composite are also up over 0.5 percent in early afternoon trading, and the S&P 500 has surged to 0.1 percent.
The FTSE 100 has ended at a new high of 9,696.74, an increase of 0.44 percent, as a result of an increase in HSBC shares following its latest results in the UK.
Although the entry of another $4 trillion firm has been treated as a victory by Wall Street, it has also been an indication to some investors that the stock market is in a bubble.
The Chief Market Analyst UK and Head of Market Analysis at IG Group, Chris Beauchamp, added that “This continues to be one of the most disliked rallies in history. Each new high in indices and every milestone achieved by individual stocks is presented as evidence of a bubble in equities.”
He further said, “It is understandable to see signs of nervousness around tech earnings this week, but the market continues to demonstrate remarkable resilience.”
