Apple’s market value of $ 2 trillion is testament to the success of the CEO (Tim Cook) services plan in changing the story of the iPhone maker.
Apple became the first public US company to break the $ 2 trillion barrier, and it became the most valuable publicly traded company in the world, surpassing Saudi Aramco, Microsoft and Amazon.
Apple shares have risen nearly 60 percent since the start of the year, and this achievement comes just over two years since Apple’s value became $ 1 trillion in August 2018.
Investors began to see Apple more of a software company than a phone maker.
And over the past four months, the market has seen Apple as a software company, with the services business growing well.
Apple began refocusing investor attention on its services business in 2015, as iPhone sales growth slowed for the first time.
Its definition of services includes a lot of different things: iTunes purchases, app store fees, (Apple Music), licenses, guarantees (AppleCare) on devices, and (Apple Pay) revenue.
In the past two years, the company has launched new subscription services to boost business, such as (Apple News +), Digital Magazine Package, and (Apple TV +).
Last year it introduced the Apple Card, a credit card in partnership with Goldman Sachs.
Apple has successfully achieved vertical integration through its suite of technology, starting with hardware and now moving to software.
And when we think of Apple, in the long run, we may not focus on what other analysts are focusing on, which is iPhone sales and device sales, but rather focus on their services.
In January 2016, Apple released new financial data related to its services business, and Cook said: I think the assets we have in this area are huge, and I think this is likely to be something the investment community wants and should focus more on.
In 2017, Cook set an ambitious business growth target, as Apple wanted to double its revenue from services for 2016 by 2020, which would put the target at nearly $ 46 billion by this year.
This goal was achieved six months ahead of schedule. In the quarter ending in June, the company announced $ 13.16 billion in services revenue, which represents about 22 percent of the company’s total sales.
Apple’s services business still accounts for half of the iPhone business, and it directly targets its current base of 1.5 billion devices.