Apple is the first publicly traded U.S. firm valued at $2 trillion
Tim Cook should get much credit for this. Back in 2015, the year that iPhone shipments peaked, the company decided that instead of trying to focus on selling new iPhone models, it would be able to obtain higher profit margins by selling recurring subscriptions to the large number of iPhone users worldwide. Apple set a goal of doubling its Services revenue from the $25 billion earned in fiscal year 2016 to $50 billion by this fiscal year. And three quarters into fiscal 2020, the company has generated $39.2 billion in Services revenue; barring a major global economic meltdown in the current quarter, Apple should hit at least $50 billion in Services revenue for this fiscal year.
The Services unit includes ApplePay, the App Store, iCloud, iTunes, Apple Arcade, Apple TV+, Apple News+, AppleCare+, Apple Music, and more. There are about 1 billion active iPhone users that the company is mining for gold.
Later this month, Apple will split its shares 4 for 1. That means that an investor with 100 shares of Apple that currently trades at $462.83, will own 400 shares trading at (approximately) $115.71.
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