Historic Achievement: Apple’s Market Value Reaches $3 Trillion
In a significant financial milestone, Apple Inc.’s market capitalization closed at approximately $3 trillion, marking the first instance of such a valuation since August. This achievement came on the heels of its shares rising 2% to $193.42 each on a recent Tuesday.
A Journey of Valuation Milestones
Apple first officially surpassed the $3 trillion market cap earlier in June, with a brief touch of this mark in December 2022 during mid-day trading fluctuations. The company’s stock reached its peak value on July 31, maintaining its status as the most valuable publicly traded company in the United States.
Symbol of Resilience and Growth
This latest milestone underscores Apple’s enduring market strength. Despite reducing its total share count through buybacks, the tech giant’s stock price has escalated by over 48% this year alone. The company’s sustained resilience is attributed to its robust product portfolio, notably the iPhone, and its effective shareholder return programs.
Investor Confidence Amidst Challenges
Investors continue to regard Apple as a bastion of stability, thanks to its substantial cash flow, globally acclaimed products, and strong returns for shareholders. This confidence persists even as the company navigates slower growth and market challenges, particularly in China.
Fiscal Performance and Future Outlook
In its fiscal year 2023, which commenced in October, Apple reported total revenues of $383.29 billion, a slight decrease of about 3% from the previous year. The company also projected a halt in annual revenue growth for its critical December quarter. This period marks the first full quarter following the launch of the iPhone 15. Looking ahead, Apple is set to unveil its Vision Pro virtual reality headset next year, representing its first significant new computing platform since the debut of the Apple Watch in 2014.
Other Apple News: Upcoming Apple Launches: New iPads and M3 MacBook Air in the Pipeline
Apple Inc. is gearing up to launch a series of new products early next year in an effort to boost its Mac and iPad sales, which have recently seen a downturn. Insiders, who have chosen to remain anonymous, reveal that the company’s strategy involves refreshing key products like the iPad Air, iPad Pro, and the MacBook Air.
iPad and MacBook Air Innovations
The planned updates are significant. The iPad Air is expected to be available in two different sizes for the first time, catering to a wider range of consumer preferences. Meanwhile, the iPad Pro is set to receive an upgrade to OLED displays, offering enhanced visual quality. The MacBook Air is also undergoing a transformation, with the incorporation of the faster M3 processor, promising improved performance and efficiency.
Addressing Sales Decline with New Releases
The Mac and iPad segments collectively contribute to 15% of Apple’s total revenue. However, they have been facing challenges due to a general decline in consumer technology spending. This downturn has been particularly noticeable in iPad sales, exacerbated by the absence of new models in 2023 – a first in the history of the product. Apple is optimistic that these new models will reignite consumer interest in the coming year.
Launch Timeline and Software Updates
The anticipated timeline for these releases is around the end of March for the iPads and their accessories, coinciding with the launch of iPadOS 17.4. As for the Macs, they are being developed in tandem with macOS 14.3, which is expected to be available between the end of January and February. However, the new hardware might only be available around March.
Vision Pro and Other Future Products
In addition to these updates, Apple is set on releasing the much-awaited Vision Pro headset early next year. Plans for 2024 include an upgraded Apple Watch with blood pressure sensing capabilities, a refreshed iPad mini, a new budget-friendly iPad, larger high-end iPhones, and updated versions of the AirPods, featuring a USB-C port. These upcoming products and updates are part of Apple’s strategy to maintain its innovative edge and market leadership in the tech industry.
Muslim investors are curious about whether Apple stock is halal (Shariah-compliant). To determine this, following the AAOIFI standard, three criteria were applied:
- Business activity.
- Interest-bearing debt relative to the company’s market capitalization.
- Interest-bearing securities relative to the company’s market capitalization.
Apple’s primary business is designing, developing, and selling consumer electronics, software, and online services. They’re known for products like the iPhone, iPad and services like AppleCare, Apple Store, iTunes, and iCloud.
Only 0.97% of Apple’s revenue comes from not-halal sources, and 3.83% from doubtful ones. As this non-compliant revenue doesn’t exceed 5% of the total revenue, it is deemed within Shariah-compliant criteria.
Financially, Apple’s interest-bearing debt is 4.60% of its market cap, which is below the 30% threshold. Additionally, its interest-bearing securities and assets are 6.69% of its market cap, again below the 30% limit. Thus, Apple meets both financial screening criteria to be considered as Shariah-compliant stock.
In summary, Apple is considered a halal stock. However, on the Musaffa platform, it scores a 1 rating, making it one of the least compliant stocks there.
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