The firm behind such iconic devices as the iPhone, iPod and iPad
has become the world's most valuable company. Apple edged ahead of
energy giant Exxon Mobil on the Wall Street stock market. Its worth
is calculated by multiplying the share price by the number of shares
issued, which is known as its market capitalisation, or market
cap.
By late afternoon, California-based Apple's market cap was
hovering around dollars 366 billion -- about $1 billion ahead of
Texas-based Exxon Mobil. The valuation marks a remarkable turnaround
for a company that was teetering on the brink until chief executive
Steve Jobs returned to resuscitate the enterprise he co-
founded.
Apple has already left rivals in the electronics sector
trailing in its wake. It overtook Bill Gates' Microsoft, the
previous No. 2, last year. Analysts said Apple's rise showed its
products had hit the spot with consumers.
Brian Marshall, an analyst
with Gleacher & Co., who follows Apple, said: "Exxon obviously sells
a product that people need. Apple sells a product that people
want."
Exxon, which set a record three years ago for the highest
quarterly earnings of any company, is seen as having limited growth
prospects -- its growth is driven by oil prices and the discovery of
new oil.
Marshall said the company was still growing, but not as
quickly as Apple, which was charging ahead at the pace of a start-
up firm -- even though it is now 35 years old. He predicted that Apple
might reach another milestone next year, by becoming the world's
largest technology company by revenue, surpassing Hewlett-
Packard.
Robert Pavlik, chief market strategist at Banyan Partners,
said the changing of the guard reflected the influence and power of
certain industries over the U.S. economy at different points in
time. He said: "Technology is what people understand now. At some
point, it used to be the radio, before that it was trains. So I
think it's sort of indicative of our society."
Apple has been on a
roll with the soaring popularity of its iPad tablet computer and
strong sales of the iPhone -- and its growth is seen as being limited
only by innovation. Investors expect Apple to grow as long as it
keeps making products that people want. That means shareholders are
betting on Apple's stock, even though it currently makes less money
than Exxon.
On Tuesday, Apple's stock gained 5.9 percent to increase
to $374.01, bringing its market capitalisation to about
$347 billion.
Exxon Mobil's stock closed up 2.1 percent at
$71.64. That gave the oil company a market cap of $348 billion. Its
stock had been down earlier in the day, allowing Apple to take the
lead.
In its latest quarterly report, Apple said stronger iPhone and
iPad sales had helped to more than double its net income to $7.31 billion and grow revenue by 82 percent to $28.6 billion.
Hewlett-Packard's revenue stands at $31.6 billion. By contrast, Exxon Mobil
posted a 41 percent increase in its second-quarter earnings to
$10.68 billion, the largest since it set a record of $14.8 billion
three years ago. Its revenue grew by 36 percent to $125.5 billion.
International companies that vie for the most valuable spot
in the world include PetroChina Co., the publicly traded unit of
China's biggest oil and gas company, and Petrobras, Brazil's state-
controlled energy company.
Microsoft last occupied the No. 1 spot in 1999, riding on the back of the dot-com boom. However, it was
knocked off that perch by previous leader General Electric the
following year, reflecting the then importance of military and heavy
equipment to the American economy.
Exxon Mobil has been No. 1 for more than five years on the back of higher oil and gas
prices. However, the markets remain very volatile following the
downgrading of the U.S. sovereign credit rating last week.
Top 10 most
valuable companies 2011
1. Apple
2. Exxon Mobil
3. Petrochina
4. Industrial and Commercial Bank of China
5. BHP Billiton
6. Royal Dutch Shell
7. Microsoft
8. Nestle
9. Petrobras
10. IBM
2001
1. General Electric
2. Cisco Systems
3. Exxon Mobil
4. Pfizer
5. Microsoft
6. Wal-Mart
7. Citigroup
8. Vodafone
9. Intel
10. Royal Dutch Shell
