Following a leap in stock and strong Q3 earnings, Apple has grown into the world’s first US$1trillion company – but how did the American technology company achieve this?
The Creators of Apple, Steve Jobs, Steve Wozniak and Ronald Wayne, began working together back in 1972, designing blue boxes that allow free calls to be made across the American nation.
They then joined forces to build the first ‘Apple Computer’ back in April 1976, which was incorporated by January 1977.
The computer helped the start-up witness significant momentum and revenue growth. It took as little as three years for the team to begin hiring computer designers and build a production line to help towards the creation of new products.
By 1980, Apple was reaping the rewards and designing more “technological advantages”. Two years later, Jobs recruited the Head of Pepsi-Cola, John Sculley, to be Apple’s new Chief Executive.
Fired & hired
Jobs resigned as the Chairman of Apple Computer on the 16 September 1985, after losing a boardroom battle for control of the company against Sculley.
Sculley then took over the firm but was required to step down as Apple’s CEO in May 1993 over opposing to licensing Macintosh software and talking to Goldman-Sachs about splitting Apple into two companies. When he left, Apple had US$2billion to its name and was in US$200million debt.
To prevent more losses, Apple announced Jobs was back to being CEO in 1997. His expertise was needed for developing the “next best revolutionary products”.
Not long after his return, Jobs took the limelight at the Macworld Expo conference in Boston, 6 August 1997, to let consumers know how “Apple is going to made healthy again”. Here is a video of his speech:
Jobs revealed the “beginning steps” he was going to take in order to get the company back on track, which included changing the board of Directors and Board Members to Oracle’s CEO, Larry Ellison; Former Apple Executive, Bill Campbell (who remains on the board today), and Former IBM CEO, Jerry York (who passed away in 2010).
After becoming Apple’s permanent CEO, Jobs helped towards the development of the PowerMac Curve, OS X Operating System, iPod, iPhone and iTunes Music Store.
By 2007, iPhones were the most widely held stock in the world. The phones soon became a must-have for the majority of consumers around the globe, taking the telecoms industry by storm. iPods were also becoming extremely popular.
Jobs then brought in hundreds of Developers eager to make money by creating the App Store in 2008. At first, it had 500 applications available. As of 2017, the store featured more than 2.1 million apps.
Jobs then resigned and handed his job as CEO to Tim Cook six weeks before passing away to pancreatic cancer in 2011. Cook boosted the company’s revenue to US$127.8billion in 2011 and a further US$156billion by 2012.
Cook then helped towards bettering “best-selling devices” – iPhones, iPods, and Macs before assisting towards the creation of Apple Watches, Apple TV, and HomePods.
Apple Watch, which was released on April 24, 2015, soon became the best-selling wearable device with 4.2 million sold in the second quarter of the 2015 fiscal year.
While creating different products, Apple also works on its software macOS, iOS, iTunes, Safari, iLife and iWork, as well as its professional applications Final Cut Pro, Logic Pro, and Xcode. All software and applications are being updated frequently to ensure it’s up-to-date, fit for purpose and security measures are in place.
Following this, more and more money was being made, the company was continuing as planned, and Apple was paying more shareholders than any other public enterprise in the world.
By the end of 2017, investment results showed the company was sitting on US$285billion in cash reserves and a net profit of US$48.5billion, with Apple Watches, Macs and iPhones being the firm’s top sellers.
Now, the American multinational technology company has hit the US$1trillion mark over its stock ranging to US$207.05 per share at 11:48 am ET last Thursday – the first company in the world to achieve this – leaving the likes of Amazon and Uber extremely envious!
Apple’s stock market is also larger than Switzerland and Turkey’s economies and is worth more than a third of the UK.
Written by Leah Alger