Anyone who has been following Apple closely at all knows that the company is run extremely well and that it is mighty profitable. What might surprise even those who watch the company and the business world in general very closely is just how profitable the company actually is. The stock market isn’t always the best indicator when talking about valuable a company is from one day to the next as there is something to be said for leaving it up to the whim of investors who can be pretty fickle when they are in the mood. Still, Apple’s rise to the top of the stock market on Wednesday August 10th shows just how well the company is doing over the last few years. A lot of that success can be attributed to the iPad.
Apple’s market cap valuation ended at $337.2 billion on the day, and despite vaulting into first the company’s shares actually dropped 2.8 percent. The company that actually fell into second place was oil giant Exxon, telling you exactly where we are when we’re talking about the most valuable companies in the world. Exxon saw their stock drop 4.4 percent in order to drop behind Apple for the first time when either company was sitting at the top of the stock market charts.
Apple has seen some real improvement in their stock value over the last few years. During their climb to the top of the earnings list, they have passed all other computer makers including Dell, HP and finally in 2010 they were able to pass their biggest competitor in Microsoft. Since Apple surged past them last year, Microsoft has actually seen a bit of a dip of their own stock and Apple’s stock is now worth more than $130 billion more than Microsoft. Ironically, a decade ago, Microsoft was also worth more than Exxon, but oil and gas prices have driven companies like Exxon to the top of the stock market where they seem like they will remain for years to come.
The culmination of Apple taking the top spot in the stock market, even it is shortlived is the massive success their newest product the iPad has done since its first release in 2010 (probably not a coincidence.) Since that device’s release, Apple has managed to keep in the news with the iPad 2 as well as repeated versions of the iPhone which have become even more popular thanks to being offered on more than one carrier. With the impending release of the iPad 3, either later this fall or at the beginning of 2012, depending on who you listen too it doesn’t appear Apple is going to lose much steam. While Apple is already the kind of computing companies, if the iPad 3 is as good as what some people are saying both with a retina display and a much faster processor, the computer company could see a more prolonged stay at the top of the stock market valuations. It appears that even if the iPad 3 falls short of expecations, the company has still established itself as a money earning juggernaut.
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