Even if Apple reaches a capitalization of $1 trillion, she can’t stay on top forever
15.05.2017 apleapplekot 0 Comments
Apple became the first U.S. company with market capitalization of which exceeded $800 billion, According to analysts, this figure may reach $1 trillion after the anniversary of the flagship iPhone 8. Brokerage company Cantor Fitzgerald raised its forecast for the value of the shares of “Apple” giant from $160 to $180: at the current number of shares in issue this gives Apple a market capitalization of $1.05 trillion.
Now Apple is one of the largest brands in the world, and its user base is continuously growing. More than 700 million people worldwide use an iPhone, and several hundred million are owners Mac and iPad.
But if we look at companies from the Fortune 500 in 1955, you will notice that most of them do not exist today. From the first summit only General Motors, Exxon and General Electric remain large and profitable, while Brenda Armour, which manufactures frozen meat products, no more. In fact, to continue to exist, companies such as General Electric and IBM were forced to rebuild their business, and they now have little in common compared to what they did 50 years ago. Apple will also have to rebuild your business to be successful in the future.
Now the company produces mobile devices that operate in a closed ecosystem. The Google brand is her real competition thanks to the Android platform, but it does not bring direct profits, with the exception of income from advertising and applications. Apple is the users who first pay for the hardware, and then for products and services associated with its software.
The world is moving towards a digital future, and even the Apple ecosystem becomes less closed. But she continues to be tied to the creation of devices that are rapidly becoming universal. IBM was able to survive only by going from the production of typewriters and computers for sale high-tech services and solutions. But the Nokia brand, which at its peak in 2007 belonged to 41% of the mobile phone market, is now almost forgotten. The same fate befell the Blackberry, which owned 20% of the market in 2009.
Soon Apple will still grow, but this does not mean that it will retain the same position in 10 years. In today’s world technology is evolving very quickly, and if the “Apple” brand will not change with them, it will remain in the past.