Apple's market capitalization has exceeded $3 trillion as its shares reached $190.73 during trading. This milestone was previously achieved in January 2022 but dipped before closing. According to David Russell, vice president of market intelligence at the TradeStation Group, Apple's investments in services before the pandemic are now paying off. The market assigns higher multiples to these revenues, which contributes to the company's valuation. However, renewed confidence in Apple's fundamentals is the main driver behind its recent success.
Russell also mentioned that higher-priced iPhones are boosting Apple's margins, and investors are optimistic about future prospects, especially with a quarter-billion handsets due for upgrade soon. Additionally, Apple's entry into the Indian market is seen as a significant growth opportunity.
The recent state dinner at the White House, attended by Indian Prime Minister Narendra Modi and CEOs from Apple, Google, Microsoft, and OpenAI, highlights the U.S.'s interest in strengthening ties with India. As India experiences rapid economic growth and becomes an attractive destination for companies relocating operations away from China, the U.S. sees an opportunity to deepen its relationship with the country.
India's economic significance is evident as it surpassed the United Kingdom as the world's fifth-largest economy last year. Moreover, its population recently surpassed China's to become the world's largest, and it is projected to continue growing for decades.
Overall, Apple's market capitalization surpassing $3 trillion is a significant achievement driven by its investments in services, confidence in its fundamentals, and growth potential in India. The company's success aligns with the U.S.'s interest in strengthening ties with India and taking advantage of its economic growth.