When Steve Jobs–Apple’s great innovator–died in 2011, business experts predicted that we would also see the slow death of his beloved company. Sure enough, over the next few years, Apple’s stock and company value declined considerably. 2016 was a particularly troubling year for the brand and it seemed that what everyone was saying–that the phones aren’t the best out there and the company just isn’t as innovative without Jobs–was true. This year has been a completely different story. 2017 has seen a marked uptick in Apple profit and value and their stock reached an all-time high in Wednesday’s market. Guess it was too early to count Apple out of this race.
Today, the value of the Apple company gained an incredible $48.1 billion in additional value (that’s a crazy jump). To give that number some perspective: according to CNBC, that’s more than the total value of the entire Ford motor company. That also leaves Apple with enough cash to buy Wal-Mart outright (although, there’s no reason for them to want to do that). Basically, Apple is raking in record-breaking money now when a year ago we figured they were going to slowly lose all their sales to Samsung. And they haven’t even changed anything. Or have they?
Apparently Apple’s great secret value isn’t in their latest iPhone offering or the new touch-bar Macbooks. According to CNBC, the real confidence-booster for stock holders is Apple’s ever-expanding services business.
Services like the App Store, iTunes, Apple Music, AppleCare and iCloud are making almost 11 percent of the company’s total revenue and getting bigger all the time. So it’s the software that’s really keeping Apple in it right now, but don’t count out their hardware just yet either. It looks like next month could bring big new things from the tech giant.
Although Apple said that the launch of their next iPhone (whether it be a 7s or 8) will be delayed, their high projected earnings for the next quarter indicate the kind of spike they would see if they were to release a new iPhone. The original launch was supposed to be September, so we may see that new phone within the next two months after all.