Apple becomes the world's first $3 trillion company

Apple passed $1 trillion threshold in August 2018 and became a $2 trillion company in August 2020

Apple reached yet another major milestone on Monday - becoming the world's first company to hit a market capitalisation of $3 trillion.

The iPhone maker's shares rose by 3 per cent to a new all-time high of $182.86, surpassing the $182.85 per share it needed to reach the new milestone. The stock later eased back from that level to trade at $182.

Apple became a $1 trillion company in August 2018 and passed the $2 trillion threshold in August 2020. The final $1 trillion increase in its market value happened in the last 16 months as the pandemic surged along with demand for Apple's new IPhone 13, its older models, as well as the company's subscription services such as Apple TV+, Apple Music, iCloud and the App Store.

In July, Apple said it profits had almost doubled to $21.7 billion in the quarter ending 30 June 2021. Its revenue in the second quarter grew 36 per cent, year-over-year, to $81.4 billion.

In Apple's third quarter, which ended in September, the company's sales surged nearly 30 per cent to more than $83 billion.

While the $3 trillion milestone is mostly symbolic for Apple, it does show investors' trust in the company and its ability to grow. During the pandemic, investors turned to Apple, thanks to its strong fundamentals, a robust balance sheet and remarkable cash flow, which it uses to invest in new products, buy back stocks, and to return capital to shareholders through dividends.

Apple's market value of $3 trillion also means its market cap is now roughly on par with the gross domestic product (GDP) of the United Kingdom. It exceeds the GDP of other major economies including France ($2.9 trillion), India ($2.9 trillion) and Russia ($1.6 trillion).

While Apple has now touched the $3 trillion milestone, its peers are not far behind.

Microsoft is currently worth about $2.5 trillion, Amazon has a $1.75 market value, while Google's parent company Alphabet's market valuation is just below $2 trillion.

Saudi oil company Aramco is valued at about $1.9 trillion.

Apple's stocks have climbed about 5,800 per cent since the launching of the first iPhone by former CEO Steve Jobs in January 2007.

Under Tim Cook, who became the chief executive in 2011, Apple's market value has grown by nearly $2.7 trillion, a feat that surprised critics who questioned Cook's credentials after he took over from Steve Jobs.

In 2021, Apple's services business accounted for nearly $70 billion of revenue, double that of four years ago. The company has also diversified its hardware offerings substantially into Apple Watches, AirPods and other accessories under Cook's leadership.

According to CNBC, the company sold nearly 27 million pairs of its newest AirPods model over the holidays, driving 20 per cent growth year-over-year for Apple's wearables business during the quarter.