Apple is Now the Most Valuable Company in the World! Here is Why That is Just Nuts!

By: Hillel Fuld

You know something out of the ordinary must have happened if the entire tech world is talking about the stock market. Well, something very much out of the ordinary did happen. A company that started off as a home computer pioneer, then pivoted (out of lack of a better word) over to the mobile industry with its iPhone, has become more valuable than oil companies, such as Exxon that sell a commodity to every single country around the globe.

Apple, as you must have heard by now, announced its fiscal Q1 results yesterday and completely and utterly blew away even the most optimistic market analysts. Apple generated $46.33 billion revenue in 14 weeks. That is a number that is more than double Microsoft’s revenue of $20.89 billion in its last quarter.

But revenue is just revenue, right? How were their profits? You sitting down? Apple made $13.06 billion in profit, again, in one single quarter. For the sake of perspective, that is much higher than all of Google’s quarterly revenue of $10.6 billion.

You can read more of the insane numbers here but in one sentence, Apple’s Q1 was the fourth biggest quarterly profit ever. The other three were all oil companies.

The result, besides Apple’s $97 billion of cash is that the company’s market cap is now a whopping $414.83 billion!! That makes Apple the most valuable traded company in the world, with the number two spot belonging to Exxon at $414.47 billion.

Now, let’s not forget a few more things. This quarter was the quarter in which the iPhone 4S was announced. You know, the iPhone that “disappointed” everyone because it looked just like its predecessor? This quarter was also the quarter in which the “iPad Killer” Kindle Fire was released and which apparently hurt iPad sales. Yea, Apple looks like it is bleeding pretty bad.

For a deeper analysis of why Apple’s quarter was so good, read MG Siegler’s post here.

I don’t know about you, but to me, the conclusion here is pretty obvious. Apple’s strategy of charging a premium for a superior and fully polished product just works. Yes, Google’s “Be everywhere” strategy will help them win the numbers game and gain market share, but at the end of the day, a company has a goal, even Google, to generate profitability, and based on these numbers, Apple has rewritten the rule book on how to achieve that.

Enjoy a nice interview with Bill Gates on his relationship with Steve Jobs. I can’t help but think what Jobs would be saying if he was around to hear today’s news.

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