Apple has become the first company in history to hit the $US800 billion mark in market capitalisation, just over two years after hitting the $US700 billion milestone.
Shares in the world’s largest technology company have risen by 33% this year, and almost 50% since the US election in November, closing at $US153.99 on Tuesday. This means Apple now represents around 4% of the $US21.7 trillion that makes up the entirety of the S&P 500 index.
“It’s just reflective of how powerful a franchise it is. It may be the most powerful franchise in the country today,” said Rick Meckler, president of LibertyView Capital Management, speaking to Reuters.
“Considering that it has a limited number of products, it has really dominated that market in a way that few companies have, and it’s been able to retain margins despite lots of competitors.”
Despite a 1% slump in iPhone sales over the previous quarter, the device is still holding up well with 50.8 million sold, despite the fact that many customers will be holding out for the upcoming iPhone 8.
Apple’s success will be largely thanks to its surging services business, which was up 18% year-over-year. This includes investments in its Apple Music platform, Apple Pay, and its App Store, which saw a 40% rise in revenue alone. Apple’s developer community also expanded by over 20% during the quarter.
If current trends continue, Apple is expected to hit the $1 trillion market cap level later in the year. Apple’s $US800 billion cap was larger than the economies of 45 of the 50 US states, beaten only by Florida, New York, Texas, California and Illinois.
The achievement solidifies Apple’s position as the world’s most valuable brand, having briefly lost the title to Google back in February 2016. Since then, stocks in the company have consistently smashed industry records.
With the launch of its redesigned flagship smartphone only months away, a sales boom could increase Apple’s fortunes even further.
This article originally appeared at itpro.co.uk