Apple market value exceeds 500bn for first time

Published:  1 Mar at 4 PM

As reported by the BBC, Apple's stock market value finished above $500 billion for the first time, solidifying its position as the globe’s most valuable company. Only six American firms have ever reached a value of over $500 billion.

In 2007, oil giant Exxon was worth this much, while Microsoft was temporarily worth $600 billion in 2000. Intel, General Electric and Cisco Systems have all reached the $500bn mark.

The popularity of iPhones and iPads means the sales and profits of Apple are increasing at rates hardly ever seen in a firm of its size. Analysts predict that the firm could generate a profit of $40 billion this year, which is more than most companies generate in sales.

Apple holds $100 billion in reserve on its financial books, and many investors are hoping the company may give some of this back to shareholders as share buybacks or dividends this year.

The figures cap an extraordinary turnaround for the company, whose shares were valued as low as $3.19 in 1997 as it faced the prospect of bankruptcy. The firm’s share price finished at $542.44 on the Nasdaq on Wednesday.

Apple’s revival under the late Steve Jobs occurred first in computers, followed by the iPod music player, and then the iPhone and iPad.