Despite the global pandemic that has decimated global supply chains and harmed consumers’ income, Apple has proven to be resilient with its ability to keep producing and selling its products.
On Wednesday, the 19th of August, Apple became the first publicly traded U.S. company to be valued at $2 trillion. Shares of the technology giant rose by 1.2% to an all-time high of $467.84 to reach the milestone.
In 2018, it will be recalled that Apple also became the first U.S.-based company to hit a market value of $1 trillion, four decades after it was co-founded by Steve Jobs in a garage.
How Apple is Making the Giant Leap
Despite the Coronavirus and facing lawsuits over various anti-competitive behaviors, Apple has shown great business success due to its sale of the iconic iPhone.
As more and more consumers are being drawn into Apple’s universe, the company has been able to sell more services such as iCloud storage and Apple Music subscriptions. The company has also ramped up sales on iPhone accessories such as the Apple Watch.
In the previous month, Apple announced it made $26 billion in iPhone sales during the most recent quarter, which is up slightly from the previous year.
Apple under the leadership of Tim Cook focused on drawing in consumers to its current brand of products instead of focusing on creating new consumer products. This has been one of Apple’s strategies for continuous business success.
Tim Cook realized mobile phones were becoming more essential in the everyday lives of consumers, and thus, periodically upgrades the iconic iPhones to exceed consumer expectations. Observing people’s love for photos, selfies, and videos, Apple consistently improves camera quality on the iPhone which gains a lot of consumer interest and generates a lot of sales for the company. Apple also slowly increases its rates on the sale of cloud storage as consumers require more storage capacity to store their photos and videos which is yet another strategy for Apple’s success.
Also, Apple has become a major player in music streaming services with its iconic “Apple Music.” Apple earned $13 billion in services last quarter, up from $11 billion the previous year. One of the strategies used by Apple in increasing sales of its music streaming service is to pre-install the software on all its devices. Consumers will thus, be drawn to use its streaming services. Apple has also been able to effectively market and promote its streaming service effectively.
Investors are expecting Apple to generate more sales as customers upgrade to the latest 5G technology that is expected to be included in the new iPhones. Should Apple continue in this trend, we might yet see another record-breaking Milestone.