On August 2, 2018, we wrote about Apple after the tech giant became the first U.S. company to hit $1 trillion. To put it in perspective, “Apple’s $1 trillion cap is equal to about 5 percent of the total gross domestic product of the United States in 2018,” said David Kass, professor of finance at the University of Maryland.
Then in August 2020, Apple hit a market cap of $2 trillion, doubling in valuation in just over two years. It’s the first publicly traded U.S. company to reach a $2 trillion market cap. However, it took less than a month for the company to give up half of the one year $1 trillion gain. According to a report from CNBC, it took just 12 trading sessions for Apple to plunge more than 20% from its all-time high, shedding more than half a trillion in market capitalization. Apple lost 22.6% of its value from its intraday record high of $137.98 from Sept. 2, losing around $532 billion in market value.
Before you start feeling bad for Apple, don’t worry, the tech giant market capital is still valued at $1.85 trillion, which is more than the annual GDP of Russia. It won’t take long for the tech giant to recover. Just last week, Apple announced new hardware and some updated software, including the Apple Watch Series 6, the iPad Air, Fitness Plus virtual workouts, and service bundles called Apple One. In recent years, the global fitness market exploded to over $100 billion in 2019.
According to Piper Jaffray analyst Michael Olson, Apple’s growing services segment made up approximately 17.7% of the company’s revenue. Its services business is led by the App Store and Apple Music. In May 2019, Olson claimed that Apple had evolved its service business so much that it was worth $502 billion.