Apple's market cap inches close to $2 trillion on reports to launch bundle services
BusinessToday.In August 15, 2020
Apple Inc stock has moved close to a $2 trillion market cap, a milestone that has been achieved only by Saudi Aramco, Saudi Arabia's state-owned oil company. Shares of Apple Inc saw strong rally this year as consumers snapped up new iPhones, iPads and Mac computers to stay connected during the coronavirus-induced lockdown. Last week, the stock rally was fueled by report that the company is readying a series of new subscription bundles for its digital service called "Apple One".
On Friday, Apple Inc shares closed trade at $459.63 apiece, down 0.09 per cent, with a market cap of $1.97 trillion. As per market estimates, to reach the psychological level of $2 trillion, Apple Inc stock price need to reach $467.8.
Apple was the first company to reach a market value of more than $1 trillion. It touched that milestone in August 2018, while it passed the $1.5 trillion market cap mark in early June. It was followed by Microsoft, Amazon.com and Google-parent Alphabet who later joined the trillion-dollar club.
Apple is set to launch bundled services for the subscription of news, music, games and fitness services at a discounted price to its subscribers by October 2020, according to a Bloomberg report. As per the report, the technology giant may be readying a new exercise app that would compete with Peloton (PTON), which would help the company generate more recurring revenue.
Apple reported revenue of $59.7 billion and profit of $11.25 billion during the third fiscal quarter of 2020, despite the ongoing COVID-19 pandemic. This was against $53.8 billion in revenue and $10.04 billion profit reported in the same quarter last year. The company, however, did not provide any guidance amid the economic uncertainty caused by the pandemic.
By Chitranjan Kumar