Apple, the tech innovator that introduced the iPhone to the world, has surpassed a market value of $3 trillion. The tech giant has become the first corporation in the world to finish a trading session with a market cap of over $3 trillion, which is more than the value of five of the S&P 500’s eleven sectors individually.

Apple Becomes a $3 Trillion Company

Launched in 1976 as a small computer company operating out of a garage in California, Apple has continually grown to become the largest corporation in the world. With a market cap of $3 trillion, it is valued at approximately double the worth of its long-standing rival, Google, and seven times the value of Exxon Mobil, formerly the world’s most valuable company.

With iPhone leading the charge, Apple has become integral to consumers’ lives. While the company has faced numerous challenges like global tensions and supply-chain disruptions, it has rebounded stronger and faster than most of its competitors, solidifying its position as a haven for investors in any economic climate.

The success of the iPhone, which accounts for half of Apple’s annual sales, has been complemented by the company’s efforts to create additional revenue streams. Apple’s expansion into emerging markets like India, and its foray into new product categories, have contributed to its consistent growth and extraordinary market value.

So far this year, Apple’s stock has gained 49%, boosted by a broader surge in Big Tech stocks as investors have jumped onto the AI bandwagon. The company’s shares closed the latest trading day at $193, up 2.31%.

This level puts Apple’s value above five of the S&P 500’s 11 sectors. These sectors include Consumer Staples ($2.4T), Energy ($1.52T), Utilities ($965B), Materials ($928B), and Real Estate ($928B).

How Apple Became the Most Valuable Company in the World?

Apple’s journey toward its $3 trillion milestone has been marked by steady growth and significant achievements. It took the company 42 years to reach a valuation of $1 trillion, an additional two years for $2 trillion, and nearly three more years to surpass the $3 trillion mark.

In January 2022, Apple briefly surged above $3 trillion during intraday trading but failed to close above this level. However, the company’s recent performance has showcased its resilience in the face of market challenges, enabling it to rebound more rapidly than its tech rivals in the post-pandemic era.

Microsoft, a longstanding competitor, briefly surpassed Apple’s market capitalization in 2021 but could not maintain its lead. Currently valued at around $2.5 trillion, Microsoft remains one of the few companies in Apple’s league.

Apple’s success in emerging markets such as India, Indonesia, Latin America, and the Middle East has bolstered investor confidence. Although sales growth in developed markets has slowed, the expanding market in emerging economies has helped offset these challenges.

To mitigate the risks associated with heavy reliance on Chinese manufacturing, Apple has been diversifying its supply chain to include other countries like India and Vietnam. However, the growth potential in these emerging markets is not expected to surpass the slowdown experienced in established markets.

“We do not believe the unit [total addressable market] and growth outside of the three largest markets is large enough to drive long-term sustainable iPhone growth above mid-single digits,” wrote UBS analyst David Vogt in a recent investor note.

Vogt also downgraded Apple’s stock rating due to sustained slow growth in established markets and limited opportunities for significant expansion outside the US, China, and Europe. Still, Apple’s recent stock price rebound, following the Federal Reserve’s decision to hold interest rates steady, indicates that investor confidence remains strong.

Apple Dabbles Into Spatial Computing With Vision Pro

Apple’s recent push into spatial computing has generated excitement among enthusiasts, VR enthusiasts, and analysts alike. The company’s $3,499 Vision Pro headset combines virtual reality with placing digital content in the real world, creating a platform for spatial computing.

The headset is packed with cutting-edge features, including EyeSight, which allows it to become transparent or opaque to let people around the user know if they are immersed in an experience or available to interact.

While the Vision Pro is not expected to yield significant financial returns in the near term due to its high price point, it represents a significant step towards the future replacement of the iPhone.

All in all, Apple’s achievement of a $3 trillion market valuation is driven by the enduring popularity of the iPhone and the company’s expansion into emerging markets. Furthermore, with its ventures into spatial computing, the company continues to set its sights on new opportunities.

Meanwhile, Apple’s shares are currently trading at $193.47 in the pre-market, down by 0.26%. The tech giant has a market cap of $3.051 trillion, according to data by Yahoo! Finance.

This article originally appeared on The Tokenist

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