Apple The First Trillion Dollar Company?

Found this article on my new Pulse app (awesome, btw). Click the link following the quote for the full article if you're interested in reading it.

Apple is, according to several financial analysts, on the verge of becoming the first trillion-dollar company in history. Oddly, those who predict the rise of Apple are the same analysts who were "disappointed" by Apple's most recent quarterly earnings report.

The quarter in question included a net income rise of 54% year-over-year, a 39% revenue increase, and a 21% boost in iPhone sales--Apple's flagship product. Because, among other things, Apple shifted "just" over 17 million iPhones in the quarter, versus the 20 million that analysts by consensus expected, they gave the stock lower marks--and the company experienced an immediate 7% drop in its share price.

Apple is one of the world's biggest companies. Its tech dominance and influence is global in reach. When firms get to this size, the harsh statistics of large numbers, the effects of scale and other tricky market forces mean it's generally hard to deliver large percentage growth on sales or profits. Yet Apple manages to do both, as well as boosting sales of its key iPhone product, quarter after quarter. You'd expect the Street would be pleased by this.

Analysts Just Can't Get Apple Right, It's Too Innovative

Wonder what kind of stir this would've caused if it was posted in the regular News/Rumors thread. :rolleyes:

Well, they've got a little ways to go.

Right now, market cap is 372.27B. The stock would need to increase 2.68 times their current value (almost $1100 a share) to reach this threshold.

Another top contender is Exxon Mobile (currently 394.17B).

Here's where the fight comes. Apple would need to do more than just continue to innovate; that will only take them so far. I'm not sure if they could reach it through their current product line, or if they would need to expand and become a serious tech player in all fields (slowly but surely). Either way, they could be poised so long as they stay ahead of the curve.

The reason I mention Exxon Mobil is they also could reach that threshold depending on alternative energy and oil supplies and how that pans out. If Exxon Mobil leads the alternative energy push alongside their increase revenue from increased oil prices due to scarcity (and still high demand), they too could command a larger market cap.

Of course, there are way too many factors (both within the company and outside, e.g. the economy in whole) to accurately even estimate how Apple will do 5-10 years from now. It took them that long to build up to this; it can go away in the same time frame as well.

Unfortunately while I agree Apple is cruising full speed right now, I think it's just speculation on increasing market cap by that much based on their current situation, product lineup, future products that we know of, and current coverage in the tech field.