Apple Is the First US Company to Hit $2 Trillion Market Value

By Madelaine D. Aug 20 2020, 03:26 AM EDT

Apple's stock price rose during early Wednesday trading, hitting a market cap of $2 trillion.

The company became the first publicly traded U.S. firm to reach a $2 trillion market cap. The achievement came after the company passed the $1 trillion mark in August 2018.

The iPhone maker led in the tech sector's rise against many other firms' struggling amid COVID-19's economic impact. Apple's share price hit $467.77, reaching the $2 trillion cap just before 11 a.m. ET.

First-Ever Apple Car Could Begin Production in 2024 — People walk past an Apple retail store in Downtown Brooklyn, January 29, 2019 in New York City. Apple is set to report first-quarter earnings results after U.S. markets close on Tuesday. Drew Angerer/Getty Images

Later in the day, Apple shares neared its 52-week high, but the stock closed up fractionally at $464.83. As the broader market also cooled, it erased gains paced earlier by the previous day's record closing high for the S&P 500.

According to Deadline, Apple's market cap declined at $1.979 trillion later in the day.

After a report that the company will introduce bundles of its music, TV, video game, iCloud, and other services, market watchers have been expecting Apple's $2 trillion milestones, and shares jump.

Two years ago, Apple became the first U.S public company that hit a $1 trillion market capitalization. It became the world's most valuable company that dethroned state oil giant Saudi Aramco at the end of last month.

In 2018, the Q3 earnings results flew past Wall Street forecasts and delivered $59.7 billion revenue and earnings per diluted share of $2.58 billion.

Making services is the tech giant's strategic focus as it shifts away from hardware. The hardware has more economic sensitivity and less reliable profit margins.

The iPhone posted sales declined after more than a decade as a standard-bearer for the first time in 2018. It has since stabilized. The services division's gross margins topped 67 percent at the quarter ending of June 30, with total revenue of $132 billion.

Apple's paying subscribers to its various services now have 550 million. The company expects to reach its goal of 600 million by the end of 2020.

According to a Fox7 report, not all tech companies are doing well during the coronavirus pandemic. One example is Google, which suffered the first quarterly revenue decline from the previous year during the April-June period.

The advertising sales, wherein the company gets most of its profit, tapered off amid the pandemic that caused lockdown across the U.S.

On the other hand, Apple fared extraordinarily well, making it on the top by the timely April debut of the new iPhone model priced about $400; 40 to 60 percent less than the fancier devices it released last fall.

As per Fox7, Apple will have another litmus test in October, when it is expected to unveil a line-up of new iPhones that includes a model capable of connection on the next generation of ultrafast wireless networks better known as 5G.

Due to the pandemic that caused production delays, the next wave of high-value iPhones is coming out a few weeks later.

The suspension will test Apple clients' loyalty and how much people are willing to pay for a device during tough times for most people outside the technology industry.