Apple tops $800 billion market cap for first time

Apple Inc became the first US company to top the $800 billion (nearly Rs 53.22 lakh crore) mark in market capitalization on Tuesday, slightly more than two years after it crossed the $700 billion (nearly Rs 46.56 lakh crore) threshold.

The iPhone maker’s shares have gained 33% this year and almost 50% since the US election in November. The company represents about 4% of the $21.7 trillion (nearly Rs 144.36 lakh crore) that makes up the entire S&P 500 index.

Apple accounted for as much as 4.9% of the S&P 500 in September 2012 but is a smaller percentage now as the index as a whole has rallied more than 7% this year.

“It’s just reflective of how powerful a franchise it is. It may be the most powerful franchise in the country today,” said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey, whose firm does not own the stock.

“Considering that it has a limited number of products, it has really dominated that market in a way that few companies have, and it’s been able to retain margins despite lots of competitors.”

If Apple continues on its growth path, the company will top the $1 trillion market cap level later …read more