Apple reaches $1 trillion milestone
August 3, 2018 -- Apple has reached a 13-figure market value of more than $1 trillion – a milestone that highlights how a group of megacompanies has dominated the United States economy.
On Tuesday, July 31, Apple reported strong quarterly earnings, with its profit increasing to $11.52 billion, up nearly a third from the same period a year earlier.
The report helped bolster the company’s stock price; as of August 2, Apple’s shares were trading at $207.39 -- an 843 per cent increase since 1980, when Apple went public at $22 a share.
Many economists talk about the trend toward corporate concentration -- companies growing in size and grasping vast profits. This consolidation is especially pronounced in the technology sector and extends far beyond the stock markets.
Economists are starting to connect the rise of megacompanies to lacklustre wage growth and rising income inequality in the United States. This social and political influence has prompted some lawmakers to demand more regulation to rein them in.
Google was recently fined a record $5 billion by European Union antitrust regulators who accused the tech giant of abusing its market position by forcing mobile phone companies to install Google apps on their phones.
Last week, Facebook reported that its growth was slowing, triggering a 19 per cent plunge in its share value, cutting some $120 billion off the company’s market value in a single day.