Recently, Apple became the first $1 trillion company. Apart from being the biggest tech organization, it is best among its counterparts. From building a motherboard without a monitor and keyboard (Apple I) to the newest iPhone X (Behemoth), Apple has left every tech biggie behind. Apple, primarily being a product-based company focused on their iPhone instead of trying their hands everywhere and see where it has brought them. Their one Smartphone’s progress is so high that the other phone makers can’t even move the needle. Let’s dig deep into Apple’s Success Story and know how it all happened.
Apple and technology are like two sides of a coin. The way they are bringing the amazing new technologies in these small-sized handsets is just incomparable. Its current dominance and rise is quite puzzling for its competitors and even for us.
Both past and the recent success of Apple are based on the growth of its products. Other than their trademark iPhone, Apple has even other successful products. For instance, its iPad brought the tablets into the market. iPad boasted 46% of US market share and grabbed $5.9 revenue. It is by far the most successful tablet in the world.
Apple’s journey has been a bit extraordinary from the beginning. Who would have thought then that a 21-year-old college dropout would have this enormous vision?
It all started with Jobs hanging out in a garage with his two friends Steve Wozniak and Ronald Wayne. Jobs and Wayne started working for a gaming company while Wozniak worked for the Hewlett Packard. But, on April 1, 1976, this trio built the first Apple computer and it was the first foot of this remarkable journey.
But, Wayne sold its Apple shares for just $800 just three months after the initiation of Apple while the two Steves went on with their vision.
Everyone is aware that Apple had a great fourth quarter and has became the first $1 trillion company, but the way to success hasn’t been an easy one for the iPhone maker. The iPhones are doing better than ever today. But, very few of us know that Apple was once on the brink of bankruptcy. Yeah right! It happened 20 years ago in the August of 1997. Let’s take a detailed look at what happened with the Apple in the back of summer of 1997.
Apple was going through a disastrous phase at that time and it was on the verge of getting defunct. Apple decided to buy a computer company ‘ NEXT’ with the hope of a right direction to their company. But, Steve Jobs convinced the board of rather getting a help from an established organization than to buy a company. Steve Jobs knew that if Apple was to be saved, the only chance was to seek help from the competitors.
Microsoft realized that eliminating competition isn’t the only way to win and it came forward to rescue Apple. It invested $150 million in return for non-negotiating shares. It assured Apple that it would support Mac for five years. In the favor, Apple dropped the lawsuit against Microsoft that claimed that Microsoft had copied Mac OS to make Internet Explorer the default browser in computers instead of a choice. After the agreement, Jobs even thanked Bill Gates for their support, which was even reported in the Time Magazine that year:
Various tech biggies such as Alphabet (Google), Amazon, Microsoft have been doing a great job in the technology space. On Aug 2, 2018, Apple hit the market value with $1 trillion in which iPhone X played a major role. iPhone sales increased in such a way that when it grew by 1 percent, revenue instantly jumped by 20 percent. With $53.3 billion in revenue, the company managed to grow by 17 percent per year. Other Apple services may not be showing the same magical growth, but iPhone is killing from one side and it’s enough of what Apple requires.
When we talk about market capitalization, Apple has been the biggest company in the world for all these years. Now, Apple and Tim Cook are becoming more powerful than ever and we can hope that they make fruitful use of this success.
The company’s bright fortune is surely a good news for the individual investors. The stock of Apple is widely owned by teachers to electricians to lawyers. By rising to $1 trillion, it has given a reflection of how big is the investor’s scope with Apple. Apple is now at a position where it is growing and is profitable for investors of all sort, be it the newbie’s or the established ones.
Kate Warne, the investment strategist at Edward Jones, says,” Apple’s $1 trillion valuation is a great reminder to investors that companies with innovative ideas combined with world-class products and service can create value for investors over time”.
Every area that Apple is targeting and investing money has got competitors lurking around. Whether it’s for the Chatbots and AI to cars and voice, hungry co-opted companies are following it like a shadow.
Apple surpassed the one trillion dollar mark and left us all amazed. But, can they maintain their edge in the tech market? Can Apple provide the amazing technological advancements as it has done in the past? Will it be able to engage more loyal customers? Because if we look behind, there are other competitors in the race. Sustaining such big numbers won’t be easy when they have other competitor biggies who themselves carry the potential to overpower it.
Actually, the main challenge would be to manage complacency of this growth. As they say, success comes with both blessing and curse, thus, Apple has to plan their next moves properly.
Apple and controversies have never left each other’s side. Various allegations have followed Apple in the past two decades. Lately, Google has been fined $5B over Android Abuse and the sword is even hanging on Apple. Here, are few allegations which Apple has faced in the past:
- iPhone Battery Controversy
- iPhone Slow down Controversy
- Anticompetitive Practices
- Universal Compatibility Violation
- Irish Tax Bill
The list isn’t ending here; big or small Apple’s span is full of allegations. But, somehow it dodges them every time. Negativity has always been there around Apple, but it never lets itself undermine.
Apple’s reign is full of loss, defeats, triumphs, and controversies, but it has proved its potential in the market. It hasn’t built its empire overnight. Apple has overcome product flops, near bankruptcy, the death of its founder to be worth $1 trillion. Had Microsoft not invested in Apple, the company would not have come this far. Imagine today’s world without technologies like iPhone, iPad, Mac etc?
Apple’s success story is full of efforts and sacrifices, so, it won’t let anyone overpower so easily. It isn’t hidden from anyone that it has some tough competition in the market. It would be interesting to see the technology fight put up by other companies to surpass Apple and how will Apple counter them. That time will tell.