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Could a Small Issue Bring Down Apple? The $3 Trillion Question.
Investigating the Subtle Issue That Could Affect Apple’s Future.
$3 trillion.
It’s hard to imagine. How many companies do you think are valued at $3 trillion? Just two: Microsoft and Apple.
No company had ever reached this level before them, and it’s quite recent. Apple hit this milestone in 2022, and Microsoft followed in 2024. What could bring down a $3 trillion company? Not much, but even a little can be enough. A company’s valuation is based on its finances, reputation, long-term strategy, and factors beyond its control, like the economic context, political decisions, a pandemic, or, worse yet, the market itself.
A company’s primary goal is to convince you to buy its product over a competitor’s. But what happens when its principal competitor is itself? This year, the global smartphone market hit its lowest point in ten years because consumers believe the best smartphone they could have is the one they already own.
The biggest competitor to the iPhone is the billion iPhones already sold. However, there’s good news for Apple: people are keeping their smartphones longer, and because they keep them longer, they are willing to invest more in the next one. The only growth seen is in the high-end…