Chart of the Week - to a Trillion and beyond!
The big news this week was Apple hitting a Trillion $ market cap- the first US listed company to hit that milestone. Below is a great chart showing some of the highlights along the way.
Probably the biggest factor unappreciated factor in Apple hitting that number ahead of Amazon is the massive share buyback program they initiated back in 2012.
Over the last 5 years they have bought back almost $220 BILLION of their stock, returning cash to shareholders. No other company has bought more of their shares. Globe Article. This is not necessarily a bad thing, however a lot of companies have issued massive amounts of cheap debt to do this. Apple generates so much cash from us buying their crazy expensive iPhones that they can fund the majority of this with cash on hand.
The other big factor for their success would be this. 12.
And though Apple only has ~14% of the global smart phone market, they garner ~87% of the profits.
From Scott Galloway: “Apple commands 14% of the global smartphone market, and the rest is (mostly) Android. However, Apple garners 87% of the profits from the smartphone market. Consumers have two choices, spend a ton of disposable income on a luxury item or get a phone for free and have your data/privacy compromised.