Apple fell below its $1 trillion market market cap after reporting its fourth quarter earnings Thursday, CNBC reports.
Apple stock went down after the company said it would no longer report iPad, iPhone, and Mac sales, but went up again shortly thereafter.
“This is a little bit like if you go to the market and you push your cart up to the cashier, and she says, or he says, ‘How many units you have in there?’ It doesn’t matter a lot how many units there are in there in terms of the overall value of the cart,” Apple CEO Tim Cook said, according to Apple Insider, elaborating on the sudden shift in policy.
“A unit of sale is less relevant today than it was in our past,” CFO Luca Maestri stated, adding that the number of units sold does not reflect the relative health of its underlying business.
The tech giant’s decision to stop reporting iPad, iPhone, and Mac sales may have caused its stock to dip, but the fact that Apple made history by becoming the first public company worth $1 trillion remains.
As BBC reported, Apple value reached the historic figure in August this year, surpassing Amazon and Microsoft market cap.
After the first iPhone had hit the market in 2007, Apple shares rose by 1,100 percent. Overall, the company’s shares have soared 50,000 percent total since 1980.
Six of 10 of the world’s most valuable companies are tech-oriented, according to Statista.
Along with Apple, Amazon, Alphabet (Google’s parent company), Microsoft, Facebook, and Alibaba made it to the list.
According to Forbes, Apple is also the world’s most valuable brand. Its brand value is estimated to be around $182 billion.
Apple’s disappointing earnings report has put the iPhone maker’s $1 trillion market value at risk https://t.co/emdJAY0zC5
— Bloomberg (@business) November 2, 2018
In September this year, as Bloomberg reported, Apple CEO Tim Cook expressed concern over tariffs U.S. President Donald Trump imposed on $200 billion worth of Chinese goods.
In a letter to U.S. Trade Representative Robert Lighthizer, Cook warned that a “wide range” of Apple products could be affected by Trump tariffs, explaining that the levies would increase the cost of Apple’s U.S. operations, and disadvantage Apple in the context of the global marketplace.
Cook’s concerns were soon alleviated, since the Trump administration ended up sparing a slew of Apple products from China tariffs.
Apple’s decision to stop reporting iPad, iPhone, and Mac sales is making some investors nervous, however.
In an interview with Reuters, analyst Walter Piecyk from BTIG Research observed that companies “typically stop reporting metrics when the metrics are about to turn.”