Even if Apple reaches a capitalization of $ 1 trillion, it will not be able to stay on top forever

16 May 2017, 10:54 | Technologies 
фото с InternetUA

Apple became the first American company, the market capitalization of which exceeded $ 800 billion. According to analysts' forecasts, this figure can reach $ 1 trillion after the release of the jubilee flagship of the iPhone 8. Brokerage company Cantor Fitzgerald raised the outlook for the stock price of the "apple" giant from $ 160 to $ 180: with the current number of shares outstanding, this gives Apple a market capitalization of $ 1.05 trillion.

Now Apple is one of the world's largest brands, and its user base is continuously growing. More than 700 million people around the world use the iPhone, and a few hundred million are owners of the Mac and iPad.

But if we look at Fortune 500 companies in 1955, you can see that most of them do not exist today. Of the top twenty, only General Motors, Exxon and General Electric remain large and profitable, while Armor, which was engaged in the production of frozen meat products, is no more. In fact, to continue their existence, companies like General Electric and IBM were forced to rebuild their business more than once, and now they have little in common with what they did 50 years ago. Apple will also have to restructure its business in order to remain as successful in the future.

Now the company produces mobile devices that work in a closed ecosystem. The Google brand makes it a real competition with the Android platform, but it does not bring direct profit, with the exception of advertising revenue and applications. Apple also has a circle of users who first pay for hardware, and then for services and services related to its software.

The world is moving towards a digital future, and even the Apple ecosystem is becoming less closed. But it continues to be tied to the creation of devices that quickly become universal. IBM was able to survive, only moving from the production of typewriters and computers to the sale of high-tech services and solutions. But the Nokia brand, which at the peak of popularity in 2007 owned 41% of the mobile phone market, is now almost forgotten. The same fate befell Blackberry, which owned 20% of the market in 2009.

The next time Apple will still grow, but this does not mean that it will retain the same position in 10 years. In the modern world, technologies are developing very quickly, and if the "apple" brand does not change with them, it will remain in the past.

Источник: InternetUA