The stage of the global economy once again staged a shocking drama, and the Federal Reserve once again threw a shock bomb and decided to "pause" interest rate hikes. This news instantly detonated the global market, like a volcanic eruption buried deep underground, pushing the financial world to the top.
Under the decision of this economic giant, the market has set off a wave of frenzy, and its ** soar seems to once again prove its safe-haven nature in times of market turmoil. The RMB exchange rate has also become the focus of the market, showing the strong performance of China's economy.
But what is most striking is the impact of the Fed's decisions on global capital flows. With the continuation of the "no interest rate hike" policy in the United States, investors gradually believe that there will be a rate cut in 2024, and this expectation has spread in the market, triggering a large-scale withdrawal of international capital. These huge sums of money began to pour into the world, and the dollar inevitably began to depreciate, while other currencies saw a wave of appreciation.
The world** ushered in a round of rally, driven by this news. The three major U.S. stock indexes climbed across the board, investors poured into the popular U.S. technology stocks, and giants such as Amazon, Tesla, and Intel rose sharply. And Apple has become the pinnacle of this rally, with its market capitalization exceeding $3 trillion, which is equivalent to 21 yuan8 trillion, which is staggering.
To understand the significance of this number, just compare it to other countries. The combined market capitalization of all listed companies in France is 32 trillion US dollars, and Apple's market capitalization is almost equivalent to the size of the entire French **, and even reached 25% of the total value of China**. The market capitalization of this company is staggering, almost comparable to the overall economic strength of some countries.
Looking back at Alibaba, the former Internet giant in China, its market value once soared to more than $800 billion, and is even expected to hit trillions of US dollars, but in recent years, the market value has been declining, and now it has fallen to 189.5 billion US dollars, equivalent to 1 billion yuan35 trillion, while Apple's market capitalization is almost 16 times that of Alibaba.
Since 2023, Apple's stock price has risen by as much as 50% and its market value has increased by more than $1 trillion, and unexpectedly, the stock price low at the beginning of the year has become the best time of the year, Apple's stock price has skyrocketed, and some **even** if Apple's high-end market performance continues into next year, its market value could soar to $4 trillion.
So, what has allowed Apple's market capitalization to reach such alarming levels? High P/E ratio, false prosperity? Or is it backed by its excellent performance? In fact, the answer is not simple.
Apple's profitability in a year is more than 99% of the world's businesses. According to the 2023 financial report, Apple's revenue for the year was $383.3 billion, although it declined from previous years, but its net profit reached $96.9 billion, slightly lower than the $99.8 billion in 2022. This figure is equivalent to nearly 700 billion yuan, how many companies in the world can be so profitable?
Even the lucrative banking sector is no match for Apple. Take the world's most profitable bank, Industrial and Commercial Bank of China, for example, with an annual net profit of more than $300 billion, which is only about half of Apple's.
Apple's net profit is second only to Saudi Aramco, and the world's largest oil company's net profit in 2022 is as high as 159 billion US dollars, equivalent to 1 yuan13 trillion yuan, is the only enterprise with a net profit of more than 1 trillion yuan in the world's top 500 companies. As a result, Apple's market capitalization is the world's first, but its net profit is second.
One might think that Apple's strong performance is due to the Chinese market, but the data tells us otherwise. The U.S. market accounts for 36% of Apple's $383.3 billion in sales, making it the only market with revenues exceeding $100 billion. The European market accounted for 246%, and the Greater China market had revenue of 72.5 billion US dollars, accounting for 189%, and the market share of other regions is about 20%.
As a result, the Chinese market accounts for only about 18% of Apple's global revenue, and although it is Apple's third-largest market, it is far from a major contributor. Apple Inc. is a global tech giant with a widely distributed market, no.
It is only located in all major regions of the world, and it covers the three largest markets in the world, which provides it with a steady stream of profits and a solid support for its high market capitalization.
Unlike Apple, South Korea's Samsung smartphones are almost nowhere to be seen in the Chinese market, but it is still the world's number one selling smartphone manufacturer. South Korea's Hyundai Motor has average sales in the Chinese market, but its global sales rank third in the world.
Domestic brands have emerged in the past few years and have made significant progress in various fields, such as the automotive and smartphone industries. However, this does not mean that you can be complacent, and the layout of domestic brands in the international market requires long-term deep cultivation and continuous scientific and technological research and development. It is more necessary to be modest and enterprising, steady and steady, and down-to-earth, so as to achieve steady and far-reaching results.
In this rapidly changing economic world, Apple's success is a striking example. Its high market capitalization, excellent performance, diversified global market layout and continuous investment in innovation constitute the unassailable position of this technology giant. In today's increasingly fierce competition in the global market, every success is inseparable from perseverance and the innovative spirit of continuous breakthroughs.