Apple is now a $1 trillion company

Apple has become the first US company with a market cap of over $1 trillion. This follows a jump in its stock after reporting strong Q3 earnings that saw the iPhone maker surpass both its own projections and analysts’ estimates, while also making a strong forecast for its upcoming Q4 earnings.

Apple hit the $1 trillion mark early this morning when its stock crossed $207.05 per share at 11:48am ET (the stock has since dropped back down slightly). Given the volatile nature of the market, however, it’s possible Apple may not stay a $1 trillion company for very long, or it could bounce back and forth over the $1 trillion mark in the coming days. It technically also isn’t the first to hit $1 trillion, either — PetroChina briefly reached $1 trillion back in 2007, although the stock soon fell below that mark.

But for all intents and purposes, Apple is the first US-based (and, for now, the only) trillion-dollar company on the market. It likely won’t be there alone for long, though: Amazon is also on the verge of hitting the $1 trillion mark after its own positive Q3 results.

Of course, all of this is an arbitrary milestone based on humans’ general tendency to put more weight on nice-looking round numbers as some kind of goal. There’s really no practical difference between Apple’s worth of $999 billion and $1 trillion since it’s still an almost impossibly wealthy and influential company beyond the comprehension of individual people.

But yay, capitalism?

Correction: Apple is technically not the first company in the world to hit $1, with PetroChina briefly crossing the mark in 2007. This article has been updated to reflect that.

Apple races to become the first trillion-dollar company after strong Q3 earnings

Apple posted its third quarter earnings today with a revenue of $53.3 billion, surpassing its projection by $1 billion. It’s the strongest third quarter for the company ever, despite one that tends to slow on iPhone sales as consumers prepare for new smartphone announcements in the fall. The average selling price of the iPhone was $724, which was above analyst estimates of $693.

Apple’s expected revenue for fiscal Q4 is $60 to $62 billion, a 16 to 19 percent growth from this period last year. The strong forecast could suggest that multiple new hardware devices are coming in the fall; so far, rumors suggest that up to three new iPhone models could be announced, while consumers are also anticipating a new version of the iPad Pro and a redesigned Apple Watch. Last quarter, Apple CEO Tim Cook did not confirm a midrange iPhone X device, but he did comment that the company will “continue to provide different iPhones … for folks to meet their needs.”

Even without three new iPhones, however, the 2018 MacBook Pro with a third-generation keyboard was just released that will be part of next quarter’s revenue. Another thing to consider is that Apple also announced three iPhone models last year, but only the iPhone 8 and 8 Plus were accounted for in Q4 revenues since the iPhone X came out in November. (Apple’s fiscal Q4 ends on September 30th.)

Meanwhile, Mac sales have declined in sequential quarters after Apple all but confirmed that MacBooks with first and second-generation butterfly keyboards have a faulty design. Last month, it launched a repair program that extended its keyboard service program to cover up to four years since the original purchase date, though it will not be using third-generation components for this repair.

The biggest revenue jump continues to be within the services department (which includes Apple Music, iCloud, and Apple Care) with a 31 percent increase to a record $9.55 billion in revenue. After today’s announcements, Apple currently has a market cap of $935 billion. If stock continues to rise above 7 percent, Apple could become the first trillion-dollar company at a price of $203.46 per share.

Apple reportedly shipped 3.5 million smartwatches in Q2 this year

Apple shipped 3.5 million smartwatches in the second quarter this year, an uptick of 30 percent year over year, according to a Canalys report today. Last year the second quarter was Apple’s worst of the year, so the numbers this year suggest the Apple Watch Series 3 is considerably more popular than its predecessor.

Still, rivals like Fitbit and Garmin also made a strong showing in Q2 and they actually widened their share of the market. Features like advanced heart rate metrics and smart coaching helped those rivals set their devices apart from the Apple Watch. So although Apple shipped out more watches, its overall market share dipped to 34 percent compared to 43 in Q1.

In Asia, the Apple Watch Series 3 with LTE was the most popular model, accounting for 60 percent of a total of 250,000 units. Canalys senior analyst Jason Low said in a statement to The Verge that Apple’s progress mainly came from its decision to partner with telecom and mobile network operators in Asia and Australia. “Operators in these markets are willing to resell connected devices other than smartphones that can help them generate extra revenue from data services,” he explained.