Apple becomes first $1tn company

Apple has become the first company to hit a market capitalisation of $3tn, as shares in the company rose to $182.86, taking it past the $3tn milestone.

The company became a $1tn company in August 2018 and two years later became the first company to be valued at $2tn.

On Monday, shares in the company rose by 3 per cent to $182.86, taking it past the latest milestone, before easing back to trade at $182.

Only a handful of companies are worth more than $1tn, including Tesla and Amazon. Google parent Alphabet and oil group Saudi Aramco are valued at about $2tn, while Microsoft’s market value is roughly $2.5tn.

Apple, which earned more than $1bn of revenue a day in the financial year that ended in September, now has 745m paying subscribers to an ever-growing array of services including music streaming, on-demand video and fitness, and warranty coverage.

In the past year its services business accounted for nearly $70bn of revenue, double that of four years ago. In the previous quarter, margins at the unit reached a record-high 70.5 per cent, more than double the margin on hardware sales.

Apple has also diversified its hardware offerings substantially into AirPods, Apple Watches and other accessories.