Apple beats Microsoft in the race to become the worlds first $2 trillion Company!

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Published on
19th August 2020

Today, Apple became the world’s first company to hit a $2 trillion valuation, just 2 years after becoming the first company to pass $1 trillion!

Staggering when you consider the backdrop of chaos that surrounds the world in 2020.  In perhaps the worst economic conditions ever, an expensive, luxury brand has prospered above all others.

A company created, crafted and loved by the genius that was Steve Jobs, seems to know no limits in where its share price can reach.

The inner geek in me remembers that televised debate Jobs (The Hippy) had with Microsoft’s Bill Gates (The Nerd) in the 1980s where they tore strips off each other in what was the beginning of the computer age.  Back then, Gates and Microsoft had the upper hand through the dominance of its office based products and Windows operating system;  which Jobs famously accused Gates of stealing from Apple.

Apple always stood a little away from the crowd.  Every product was beautifully designed and crafted like a high end motor vehicle, whereas the rest of Silicon Valley just wanted to produce the next, fastest chip set without caring about the aesthetics of what they were creating. This wasn’t good enough for the perfectionist that was Jobs.

Fast forward 30 years and perhaps it’s no surprise that the two most valuable businesses in the world are the two that started it at all.  Microsoft, being the company that brought computers into the home and Apple, the company that made it cool!

Gates and Jobs are no longer at the helm of these tech giants but their genius lives on.  Both companies continue to thrive from the inspirations of their founders.

It’s difficult to predict where Apple can go from here.  Now under the leadership of Tim Cook, they have undoubtedly performed exceptionally well, but they haven’t created something new, something inspiring since Jobs passed.  The iPhone was clearly a game changer but if they are to remain at this peak, they need another game changing moment.  There are many examples of where this could go wrong, such as Research in Motion Inc, the creator of the Blackberry.  Once a world leading giant that is now consigned to the corporate scrap heap after being quickly overtaken and outdated.  Apple can check its own history books for these warnings through its close shave with bankruptcy in 1997.  Why did this happen? Well according to Jobs “We failed to innovate”.

If you invested your pension fund or investment portfolio in funds that have stakes in Apple, you’re likely happy about things right now, and so you should be – as for now Apple is very much alive and well!  But our message, as always, is that you should spread your risk through a well diversified portfolio as you can never accurately predict what is round the corner for businesses, particularly tech.