WHAT'S ONE TRILLION IN VALUE?

Why Apple is so valuable?

Apple is worth more than one trillion dollars. The other three mammoth companies worth well over half a trillion dollars are Amazon (889 billion), Google (850 billion), and Microsoft (830 billion). Now the race is on for the two trillion market value. Apple has become a company for value investor where Amazon, Google, and Microsoft are still viewed as companies for growth investors. Apple has a low PE ratio (Price/Earnings) of 19 while Amazon (220 PE), Microsoft (73 PE) and Google (52 PE) have high PE ratios.

Why has Apple created such enormous value? Profitable growth.

Why did Apple get there before everyone else? Having Warren Buffet invest heavily in Apple gave a vote of confidence and a boost. However, in the end it is about the value Apple created that got it there first.

Now the race is for two trillion dollars. First let’s shed some light into Apple, this titan of technology. Here are the 7 reason that has made apple the most valuable company in the world:

1.      Clear and Compelling Vision. Steve Jobs was a great visionary while still being deeply in touch with reality. Vision became synonymous with Jobs and Apple. The vision he casted was clear and bought by the Apple leadership, its employees and even clients and consumers.

2.      Superb Leadership and Management. Tim Cook is a great leader and manager. He has executed extremely well Apple’s strategies. He is carrying out Steve Jobs’ legacy with perfection. Companies often take a turn for the worse when its great leader and visionary is no longer running the show, not the case in Apple.

3.      Trendsetting Business. Business in the right trend. The right trendsetting created an even better business; the right and ever-expanding business model. Apple is not just a hardware company; Apple is a software company with a powerful operating system. Apple builds expectancy in its clients and consumers, then really delivers it!

4.      Continuously Innovative Culture and Ecosystem. Apple introduces new and improved products constantly. Introduces the right products at the right time. The high demanding culture creates high quality products and the brand conveys a sense of status and even perfection. Products work and are easy to use. Apple creates the demand then fulfills it!

5.      Product and Technology Acceptance by Consumers. Apple meets consumer wants and needs. Products carry prestige as they say something about the person who uses Apple products. People become loyal to the point of being addicted to the products, making the Apple business better than being into the legal drugs business. People who use Apple products seldom switch to other products.

6.      Truly Global Presence. Powerful global brands transcend country boundaries and cultures. The robust products work no matter what country or location you are at. With dominion on the smart phone business Apple has helped to bridge the knowledge gap between the developed world and many other countries.

7.      Disruptive Innovative Company. Apple is always years ahead of the competition. Company sets the tone for enormous success and has produced high profitable growth in many different industries and platforms.

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Be blessed and be a blessing to others

Carlos Fontana

Financial and Leadership Coach

(Get out of debt, make more money, pay less taxes)

"Those that take swift action will always leave those that don't breathing the dust"

"The future belongs to those who can see and pursue opportunities before they are obvious"

“Managers influence numbers, leaders influence people by inspiring them to pursue excellence”