Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Apple set to be first $1 trillion company

Dominic Rushe (via SMH) | April 9, 2012
The world's insatiable appetite for all things Apple appears to be reaching new levels.

"Going forward, consumer interest in owning future Apple products is a key metric to measuring Apple's pace of innovation."

But not everyone is buying Apple as a $US1tn behemoth. In fact some have questioned Apple's value at half that price.

The company recently announced its first dividend since 1995 and said it would be buying back $US10bn of its own shares. After selling all those iPads, Apple was sitting on close to $US100bn in cash.

At the time of the announcement Colin Gillis, an analyst at BGC Partners in New York, decided to look at the history of firms that had been valued at more than $US500bn.

Only six companies, including Apple, have been valued at over that figure. On average they have managed to stay above it for 90-180 days.

In order to continue its record run Apple has to "smash earnings forecasts to pieces", Gillis said recently. And doing that quarter after quarter may prove too much – even for Apple.

The Guardian


Previous Page  1  2  3 

Sign up for Computerworld eNewsletters.