After passing Saudi Armaco to become the world’s most valuable company in late July, Apple’s valuation recently surpassed the $2 trillion mark making it the first U.S. company to do so. But do you think Apple is really worth $2 trillion?
Apple is not the same company that it was a decade ago. A decade ago, the company was only relying on sales of its hardware products like iPhones and Macs to bolster its growth. Over time though, Apple has expanded its services business to include AppleCare+, Apple Music, and Apple TV+ in a bid to reduce its reliance on iPhones and to further boost its business. Then, there’s also the wearables business that has taken off for the company and is generating a notable chunk of its revenues every quarter. But does that make Apple the world’s most valuable company and worth $2 trillion?
Apple has done a lot of things right in the last 2-3 years, things that consumers want from their products. First, it gave prosumers the iMac Pro and then followed it up with the 16-inch MacBook Pro in 2019 with better cooling and performance. It also updated its entire MacBook lineup between 2019-2020 with Magic keyboard thereby fixing the biggest reliability issues with them. For professional users, Apple replaced the trashcan Mac Pro with the new cheesegrater-like Mac Pro in late 2019. Unlike its previous Mac Pro, the new one has a modular design that allows users to upgrade the machine as per their liking. It also has an incredibly efficient cooling system which ensures the machine stays silent even when under load. With the iPhone 11 lineup, Apple upgraded the camera system to bring it on par with other flagship Android devices and also gave its battery life a major boost while at it.
The testament to Apple’s excellent product lineup is clearly visible from its last quarter results. Despite the pandemic, the company posted record revenue of nearly $60 billion in Q3 2020 with iPad, Mac, and Services business growing by double digits.
However, some of these products are riddled with issues that Apple is just not getting around to fixing. The 16-inch MacBook Pro, for example, gets extremely hot while connected to an external display. This is a widespread issue and despite multiple macOS Catalina updates from Apple, it still persists.
Apple might be a 2 trillion-dollar company, but its products aren't as good an investment as they used to be. My Macbook Pro 16 which arrived on Dec 27, 2019, has lost about $450-a-month in value. And that's not to mention that it wasn't good enough to work well with XDRDisplay.
— OM (@om) August 19, 2020
The iPhone 11 lineup had excellent battery life when it first launched but as recent battery life comparisons show, there has been a notable decline in their battery performance with recent iOS 13 updates. Apple’s customer service is also no longer what it used to be. My 16-inch MacBook Pro is nearly 7 months old now and it has been with Apple twice for a total time of around 6-7 weeks for a faulty USB-C port. Despite complaints to Apple’s customer executive and escalating the matter for a speedy resolution the second time around, nothing happened. This is not just a one-off incident as I am largely seeing reports from customers online and in-stores being unsatisfied with Apple’s service.
Ultimately, no company is perfect and neither is Apple. The company’s valuation is possible going to keep increasing since it has some impressive product launches in the pipeline like the iPhone 12 lineup, new iPads, Apple Watch Series 6, and Macs with its custom Apple Silicon chips. But do you think all this makes Apple the most valuable company in the world? Take part in the poll below and let us know your thoughts by dropping a comment!