Apple's market cap reached approximately $3 trillion at market close, a first since August, as its shares rose 2% to $193.42 on Tuesday.
This milestone comes after the company first surpassed the $3 trillion valuation in June, with a brief touch of this figure in December 2022. Maintaining its position as the most valuable publicly traded company in the U.S., Apple's stock achieved an all-time high on July 31.
Apple's Market Cap symbolizes Resilience
The achievement highlights Apple's resilience, with the iPhone manufacturer's stock price increasing by over 48% this year alone. This growth comes even as the company continues to reduce its total number of shares through buyback programs.
Investors see Apple as a strong company with a lot of cash flow, well-known items worldwide, and sound programs for giving back to shareholders. People still think this way even though the company is struggling with slowing growth and problems in crucial areas like China.
Apple reported total sales of $383.29 billion for the fiscal year 2023, which started in October. It is about 3% less than the previous year.
Additionally, Apple said in November that it does not expect sales to grow during the critical December quarter. Notably, this is the first full quarter that includes sales of the iPhone 15.
Although Apple's stock has performed well this year, with an increase of almost 50%, it's not keeping pace with most leading tech stocks, often referred to as the 'Magnificent 7'. Nvidia's stock, for instance, has tripled in value due to high demand for its graphics processors, which are widely used in generative AI applications.
Meanwhile, Meta's stock has jumped 160%, helped by the company's focus on reducing costs and improving profit margins in what they call their 'year of efficiency.'
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Apple anticipates 2024 with Vision Pro mixed-reality headset
In 2024, Apple plans to release its Vision Pro mixed-reality headset, marking its debut in a product category that has previously seen underwhelming performances from competitors like Meta and Microsoft.
Investors are also looking for precise information from Apple regarding its approach to generative AI. Although the company has mentioned investing in AI, there haven't been any specific announcements about product plans.
The recent surge in Apple's stock price has elevated the company's market valuation to heights that may concern some investors, especially considering the company's current stagnation in growth.
The upcoming headset, operating on visionOS, is powered by two Apple Silicon chips (M2 Ultra and R1). It offers a battery life of up to two hours with an attached battery pack and can be used indefinitely when plugged in.
The device features intuitive control through hand and eye tracking and voice commands. Set to launch in the US early next year, the Vision Pro headset will be initially priced at $3,499.
Apple had never said for sure that it was working on the headset, but over the years, many theories spread about what it might make. Vision Pro is a mixed-reality device that can give you virtual and augmented-reality adventures.
As the reports said, users can switch between AR and VR using a dial that looks like a digital crown. Depending on what they're looking at, their eyes will show up on the front so other people can see them.
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