Apple Becomes First U.S. Company to Hit $1.5 Trillion in Market Value

After a strong performance yesterday that pushed Apple's stock price to another record high, shares are up over two percent again today. With today's boost, Apple's market capitalization has surpassed $1.5 trillion, making it the first U.S. company to reach that mark.

Market capitalization is simply the share price multiplied by the number of outstanding shares of the company's stock, yielding the company's overall stock market value. At a current price of around $352 per share and with roughly 4.3 billion shares outstanding, Apple's market capitalization is now at around $1.53 trillion.

Apple's total share count has been declining in recent years as the company has been aggressively buying back stock, which helps to increase the value of the remaining shares on the market. That decrease in share count is, however, accounted for in market capitalization calculations.

After hitting an all-time high share price in late January, Apple's stock slid along with the rest of the market amid the global health crisis, with Apple's share price falling 35 percent from its peak by late March. A strong and steady recovery brought back Apple up to a fresh all-time high last Friday, and it has continued to gain in recent days.

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AAPL Shares Hit New All-Time Closing High

Apple shares climbed to an all-time high at the close of Nasdaq trading on Tuesday, rising $10.53, or 3.16 percent, and hitting $343.99 per share. Apple now has a market value of almost $1.491 trillion.

Despite a bumpy start to the year, tech stocks have fared well during the global health crisis. Apple saw its stocks fall in February and March due to supplier constraints, store closures, and ongoing curbs on travel and transport, but demand for new devices was buoyed by increasing numbers of people working from home, and that saw Apple's share price surge again in April.

Tuesday's high came on the back of news that Apple plans to announce an upcoming shift to Arm-based Macs at its virtual WWDC event later this month.

Swapping over to its own house-made chips should allow Apple to release updates on its own schedule and with perhaps more frequent technology improvements. Apple should also be able to differentiate its devices from competing products with chips designed by its own internal teams, introducing even tighter integration between hardware and software.

There have been some mixed rumors on when Apple could launch the first Arm-based Macs. Apple analyst Ming-Chi Kuo believes Apple will release MacBook models with its own custom processors in the fourth quarter of 2020 or the first quarter of 2021.

Kuo expects Apple to release several Mac notebooks and desktop computers with custom designed Arm-based processors in 2021, so the custom processors won't be limited to just one machine. Bloomberg has said that Apple is aiming to release at least one Mac with a custom-designed Arm-based processor by 2021.

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Apple’s Stock Price Hits a New All-Time High

Roughly four months after hitting an all-time high just before financial markets and economies faltered in the face of the current public health crisis, Apple's stock price has returned to those levels and has set a new all-time high today.

Apple's previous intraday high of $327.85 was set on January 29, and that high-water mark was surpassed just a few minutes ago as it hit $328.00 before pulling back slightly. Apple's share price had fallen as low as $212.61 on March 23 before beginning a fairly steady march back up. The company's all-time closing high is $327.20, set on February 12.

Apple is up over $4.00 today amid broader market gains as U.S. employment numbers for the month of May released today came in with an unexpected increase.

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Lawsuit Accusing Apple of Hiding Weakening iPhone Demand Prior to Early 2019 Revenue Warning Allowed to Proceed

U.S. federal judge Yvonne Gonzalez Rogers this week ruled that a class action lawsuit accusing Apple of fraudulently concealing weakening demand for iPhones between August 2017 and January 2019 can proceed in part, as reported by Reuters.

In January 2019, Apple lowered its revenue guidance to $84 billion for the first quarter of its 2019 fiscal year, down from its original forecast of $89 billion to $93 billion. In a letter to shareholders, Apple CEO Tim Cook said that lower than anticipated iPhone revenue, primarily in Greater China, accounted for the entire revenue shortfall.

On an earnings call in November 2018, a few months earlier, Cook touted the "very successful launch of iPhone XS and iPhone XS Max" and also noted that iPhone demand in China was particularly strong during the fourth quarter of its 2018 fiscal year. Apple made no mention of potential iPhone or China weakness on the horizon.

In her order, however, judge Rogers wrote that "absent some natural disaster or other intervening reason, it is simply implausible that Cook would not have known that iPhone demand in China was falling mere days before cutting production lines," likely referring to a Wall Street Journal report that claimed Apple slashed production orders for the iPhone XS, iPhone XS Max, and iPhone XR just days after its earnings call.

"It is also implausible that Cook was unaware of emerging market issues in China despite admitting two months later that the Company observed worrying signs throughout the quarter," added Rogers.

On its November 2018 earnings call, Apple also announced that it would no longer be disclosing iPhone, iPad, and Mac unit sales going forward. Rogers said this decision "plausibly suggests that defendants expected unit sales to decline."

Apple's stock price dropped up to 10 percent in the hours after it lowered its revenue guidance, resulting in losses for shareholders. The complaint is led by the Employees' Retirement System of the State of Rhode Island.
Related Roundups: iPhone XS, iPhone XR
Tags: lawsuit, AAPL

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Apple’s Earnings Report Today to Reveal COVID-19’s Impact on iPhone Sales

Apple will report its financial results for the second quarter of its 2020 fiscal year at 1:30 p.m. Pacific Time today, providing a first look at how the company's sales have been affected by the global health crisis.

On February 17, Apple announced that it no longer expected to meet its March quarter revenue guidance due to COVID-19's impact on the iPhone supply chain and demand for its products in China. The virus has since become a global pandemic, with all Apple Stores outside of China and Korea remaining closed.

Apple's letter to shareholders at the time:
Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter…
Apple had forecasted revenue between $63 billion and $67 billion for the quarter, which ran December 29 through March 28. On average, analysts now expect that figure to be approximately $54.5 billion, down six percent from $58 billion in the year-ago quarter.

The second quarter encompassed the launch of new iPad Pro and MacBook Air models, which became available to order on March 18.

Apple CEO Tim Cook and Apple CFO Luca Maestri will review the financial results on a conference call at 2:00 p.m. Pacific Time, with a live stream on Apple's website. MacRumors will be providing detailed coverage of the remarks.
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Apple’s Stock Has Plunged 25% in Just Over One Month Amid Coronavirus Pandemic

Apple's stock opened at $241.31 today, down over 25 percent from a closing price of $327.20 on February 12. After the opening bell, stock market trading was automatically suspended for 15 minutes due to an over seven percent decline in the S&P 500.

Apple's stock price has seen wild fluctuations due to the COVID-19 coronavirus pandemic, with shares now rebounding above $250 on the intraday market.


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Apple’s Stock Plunges $20 as Stock Market Trading Temporarily Halted After Opening Bell

Apple's stock opened at $255.94 this morning, down nearly $20 from a closing price of $275.43 on Wednesday, as the COVID-19 coronavirus pandemic continues to result in wild fluctuations on the stock market this week.

The broader S&P 500 index dropped over seven percent shortly after the opening bell this morning, triggering an automatic suspension of trading for 15 minutes.

Apple like many large companies is taking several precautions in relation to the COVID-19 outbreak around the world, including closing all Apple Stores in Italy, suspending Today at Apple sessions in several regions, and more. It is also looking very likely that Apple will not hold WWDC 2020 as a physical event, with other large developer conferences like Google I/O and Facebook F8 having already been canceled.

Apple reportedly encouraged its employees in Cupertino and many other locations to work from home this week if possible.

COVID-19 was declared a pandemic by the World Health Organization on Wednesday.
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Apple Stock Rebounded Monday to Record Biggest Single-Day Move in 11 Years

AAPL shares surged 9.3 percent on Monday as the U.S. stock market rebounded and Apple's rating was upgraded by an analyst who said the company was more prepared than its competitors to absorb the impact of the coronavirus outbreak (via Reuters).

Oppenheimer raised its rating on Apple stock from "outperform" to "perform", arguing that the stock had become too cheap since its 16.5 percent drop on February 12 that hovered until Friday's close.

As Barrons notes, the rally meant Apple enjoyed its biggest single-day move in more than 11 years.
Apple played a significant role in Monday's historic rally. Shares of the iPhone maker soared 9.3%, the stock's largest one-day move in more than 11 years.

The $24.45 per share gain contributed 172 points to the Dow Jones Industrial Average's 1,296 point gain. Apple (ticker: AAPL) closed the day at $298.91, after trading as high as $301.44 during the day's session. The stock peaked at $327.20 on Feb. 12.
Apple's stock has yo-yoed amid the developing COVID-19 coronavirus outbreak, and last week saw major fluctuations within the span of hours.

The viral epidemic in China prompted many of Apple's suppliers to suspend production at their factories in February and Apple retail stores temporarily closed out of an abundance of caution.

Apple CEO Tim Cook last week said he felt "China is getting the coronavirus under control," and added that the number of reported infections in the region is "coming down day by day by day." Major ‌iPhone‌ assembler Foxconn today said it expects its Chinese plants to resume normal operation by the end of the month.

Apple's rally boosted the company's market value by $111 billion, while its market capitalization now stands at $1.3 trillion, although that's still shy of the company's all-time high of $328 set on January 29, 2020, which saw its market cap grow to over $1.4 trillion.


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Apple’s Stock Price Experiencing Major Fluctuations Amid COVID-19 Coronavirus Outbreak

Apple's stock has been on a rollercoaster ride today since opening at $257.26, with shares rising as high as $278.41 within a span of a few hours before quickly plummeting as low as the $260s. At times, the price has swung by as much as $10 in both directions in a matter of minutes in what has been a volatile trading session.

Apple's stock is still down significantly from its all-time high closing price of $327.20 on February 16, just over two weeks ago.

Apple's performance is in line with a broader selloff of Dow Jones stocks that analysts believe stems from concerns over the COVID-19 coronavirus outbreak. The virus has infected at least 80,000 people worldwide, resulting in at least 2,800 deaths, according to the latest data compiled by Johns Hopkins University.

The coronavirus outbreak prompted many of Apple's suppliers to suspend production at their factories in China last month, while Apple also temporarily closed its retail stores across the country out of an abundance of caution, leading the company to issue a rare revenue warning for the March quarter early last week.

While many of those factories and stores have since reopened, with measures in place such as limited production and reduced hours, there remains a lot of uncertainty over the COVID-19 situation and that appears to be impacting major stocks, ranging from Apple to Coca-Cola to Disney.

Apple CEO Tim Cook on Thursday said he feels that "China is getting the coronavirus under control," adding that the number of reported infections in the region is "coming down day by day by day."

Tags: AAPL, COVID-19

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Apple Comments on iPadOS Future, Coronavirus, Apple TV+ and More at Shareholders Meeting

Apple's annual shareholders meeting took place this morning at the Steve Jobs Theater on the Apple Park campus, and while most of the focus was on shareholder proposals, Apple executives in attendance did have a few interesting tidbits worth sharing.

Shareholders meetings have limited space and shareholders need to register in advance to attend, but multiple people who were there shared details about the meeting on Twitter.

During his opening remarks, Apple CEO Tim Cook commented on the ongoing coronavirus outbreak that has caused Apple to lower its March revenue forecast due to device shortages and store closures in China.

Cook said that the outbreak is a "fairly dynamic situation" and that it is causing "a challenge" for Apple. He went on to say that Apple's first priority is the health and safety of its employees. "That's where our energies are," he said.

Cook was asked why Apple didn't make an effort to get the rights to the upcoming Friends reunion show that's going to be on HBO Max when it launches in May 2020. Cook said that recycled content is "not what Apple TV+ is about." ‌Apple TV‌+ is "about original programming," said Cook. "It doesn't feel right for Apple to just go out and take a rerun."

During the meeting, Cook confirmed Apple's plans to open an online store in India in 2020 and a retail store in 2021. Apple has been working for years to establish a presence in India.

On the topic of the environment, Cook reiterated a goal that Apple executives have mentioned many times in the past. Apple's aim is to "create an Apple product without taking anything from the earth" as part of a closed-loop supply chain, which is why Apple has established robust recycling methods. "This is one of those things people say you can't do. We're going to find a way to do it," he said.

Other Apple executives were in attendance, and software chief Craig Federighi commented on iPadOS after ‌Tim Cook‌ was asked about iPad software being behind ‌iPad‌ hardware. "If you like what you've seen us do with iPadOS, stay tuned, we're going to keep working on it," he said.

As for voting on proposals, which primarily focused on standard business like electing directors, ratifying a public accounting firm, and approving executive compensation, votes went in Apple's favor and voters sided with Apple's recommendations.

Apple recommended against three shareholder proposals that were not approved, including a proxy access amendment calling for a second shareholder-approved board nominee, a proposal for a report evaluating the feasibility of including sustainability metrics into compensation plans provided to executives, and a proposal asking for a report on whether Apple "has publicly committed to respect freedom of expression as a human right."


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