Apple is close to becoming the first company to reach a $1 trillion valuation.
The company’s share prices rose by over 5% on Wednesday (August 1st) to finish the day at just over $201. Overall, the value of Apple is estimated to be $975 billion, making it the world’s largest company.
The other three companies competing for the $1 trillion market cap are Amazon, Alphabet and Microsoft.
The reason for Apple’s success was a better than expected return on new iPhones. The number of iPhones sold in Q2 grew by just 1% from last year, but the increase in price means it was a successful financial quarter.
The average price for an iPhone has risen to $724, and the iPhone X, Apple’s most popular phone, will cost a consumer $999.
Thomas Forte, an analyst from DA Davidson & Co. told the BBC: “The lesson Apple’s management has learned from the iPhone X, is when you sell a smartphone for more than $1,000 you can sell fewer units and still reap the financial benefits.”
In comparison, Samsung had a poor Q2. The company’s flagship product, the Galaxy S9, reported very disappointing sales.
Despite this positive quarter, Apple was overtaken by Huawei as the world’s second biggest smartphone company. Samsung remains in first place.
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