Apple Hits $4 Trillion Market Value, Becomes World’s Third Tech Giant to Cross Milestone

Apple crossed $4 trillion market value for the first time on Tuesday, making it the third big tech firm to do so. Robust demand for its newer iPhone models has dispelled fears that the company has been lagging in the AI ​​race.

According to news agency Reuters, Apple shares have risen nearly 13% since the launch of the new iPhone on September 9th. This is the first time this year that the company's stocks have reached positive territory.

CIO of Northlight Asset Management, Chris Zaccarelli, said, "The iPhone accounts for more than half of Apple's profits and revenue. The more iPhones are in people's hands, the stronger the company's ecosystem."

Apple shares were under pressure due to fierce competition in China and uncertainty surrounding US tariffs earlier this year. Investors were concerned about high taxes on the company's manufacturing hubs in Asian countries like China and India. However, the new iPhone 17 lineup and iPhone Air attracted customers from Beijing to Moscow within the first few weeks of launch. The company absorbed the high costs of tariffs.

Analysts say the iPhone Air's slim design could pose tough competition to rivals like Samsung. According to a Counterpoint report, initial sales of the iPhone 17 were 14% better than the previous model in the US and China.

Brokerage Evercore ISI expects strong demand for Apple's new iPhones to exceed market estimates for the September quarter and issue a positive forecast for the December quarter.

Apple is the third company to reach a market value of $4 trillion, after Nvidia and Microsoft. Currently, Nvidia tops the list with a market cap of over $4.5 trillion.

Apple's cautious AI approach has been a concern for investors. Recent reports suggest that several senior AI executives have moved to Meta.

The company has delayed the launch of its Apple Intelligence Suite and ChatGPT integration, while Siri's AI update will now arrive next year. Reports suggest Apple has also considered several tie-ups with Alphabet's Gemini AI, Anthropic, and OpenAI.

Zaccarelli said, "The lack of an AI strategy is putting pressure on the company's stock." If Apple introduces AI in a way that excites both users and the market, it could become a completely different company.

Apple reported impressive results in the April-June quarter, with double-digit growth across all major segments. The company will now report its fourth-quarter results on October 30.

According to LSEG data, Apple shares are trading at 33.2 times estimated earnings for the next 12 months, compared to 27.42 for the Nasdaq 100. Apple shares have gained 7% so far this year, while the Nasdaq index is up nearly 22%.