When the markets closed last Friday, Apple’s stock price was up over 8 points, finishing the day at $218.95 a share – the highest share price in Apple’s entire history.
For investors, fueled by favorable news from financial analysts, and a quiet, almost serene shareholder’s meeting – Friday became a rallying point for Apple. News that the long-awaited iPad would ship the beginning of April, and soaring iPhone sales also bouyed the uptick.
But deeper analysis shows ‘the rest of the story’ behind Apple’s fortunes.
The meteoric rise of Apple’s share price now puts Apple’s market cap at just under $200 billion, making it the fourth largest publicly traded company in the US behind Exxon Mobil, Microsoft, and Wal-Mart.
Apple is the only company in the monied elite that actually makes something.
If you drive a car – oil purchases are a necessity. Wal-Mart, America’s ubiquitous and oft-despised retailer resells low-end off-shore goods to folks trying to save a buck. Microsoft trades on legacy code, excuses, and onerous licensing schemes that have [thus far] entrapped most American consumers and enterprise in OS hell, with no hope of escape.
Then there’s Apple – visionary leader in hardware, technology, software, services, and support.
A company rooted not just in capitalist ideals – but the American dream of build a better product, and consumers will beat a path to your sparkling retail stores, or camp out for days awaiting your latest, industry-changing product. Apple’s manta of ‘Think Different’, and ‘it just works…’ resounds with consumers weary of cheap solutions [like Dell] that cause nothing but frustration, waste time, and end up costing more in the long run.
Apple is using its wealth, as Steve Jobs defty noted last week, to take ‘big bold, risks.’
Those risks have largely recast the way we purchase and listen to music. If the promise of the iPad is fulfilled – network television, the film industry, publishing, and newspapers may find a powerful, new force invigorating their now bleak fortunes.
Bold leaps in technology require investments in R&D, and people. They also require visionaries and leaders willing to take ‘big, bold risks’ – people like Steve Jobs – and his dedicated and talented team at Apple.
It’s easy to sit back and count imaginary profits, and second-guess true visionaries. Apple fans have fueled an online community of boosters, blasters, and rumor-mongers. They all miss the point. For those who pay close attention to Apple’s dreams and accomplishments – there are important lessons to be learned.
For the sake of our national economy – and our future – Apple is an important teacher.
For comparison, here are the Market Cap’s for a few other tech giants:
• Google – $179.41B
• IBM – $165.30B
• Hewlett-Packard – $122.69B
• Intel – $114.84B
• Amazon – $57.31B
• Nokia – $52.40
• RIM – $38.72B
• Sony – $36.47B
• Dell – $27.16B
In the interest of full-disclosure, I own as much stock as finances will allow – and have no interest in selling at any price. Like Apple, my eyes are on distant horizons.