Prime Highlights
- Apple briefly crossed a $5 trillion market valuation, becoming the second company to achieve the milestone.
- Strong product demand and a disciplined AI spending strategy have supported Apple’s share rally.
Key Facts
- Apple became the world’s most valuable company after overtaking Nvidia earlier this month.
- The company launched a new US device leasing programme through Klarna.
Background
Apple briefly crossed a market capitalization of $5 trillion, becoming only the second company after Nvidia to reach the milestone. The company’s shares climbed to an intraday high of $342.89, taking its market value to about $5.036 trillion before settling slightly lower with a valuation of $4.98 trillion.
Apple recently surpassed Nvidia as the world’s most valuable company. Apple’s strong share performance this year has been driven by healthy demand for its products and its strategy of avoiding the heavy artificial intelligence infrastructure spending seen across the technology industry. Instead of building large AI infrastructure, the company has relied on Google’s AI technology to power new features, including an upgraded Siri.
The company has also benefited from keeping iPhone prices unchanged while increasing prices for MacBooks and iPads. Analysts believe this encouraged more customers to buy iPhones ahead of possible price increases later this year.
Apple also introduced a device leasing programme in the US through Klarna. The programme allows customers to pay monthly for products, with plans starting at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.
Analysts said the leasing option makes Apple products more affordable by spreading payments over time rather than lowering prices.
Apple is expected to announce its third-quarter earnings later this week. Market estimates suggest quarterly revenue could rise by more than 15% compared with the same period last year.
