Apple Reaches the $1 Trillion Mark

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. surpass / sɚˈpæs / (v) – to do better than someone/something
    Example:

    The company surpassed its sales from the previous year.


  2. milestone / ˈmajəlˌstoʊn / (n) – an important stage in the growth or progress of someone/something
    Example:

    Exceeding the sales target is one of the company’s milestones.


  3. attain / əˈteɪn / (v) – to reach or achieve something
    Example:

    The sales team was able to attain only 90% of its monthly quota in June.


  4. lucrative / ˈluːkrətɪv / (adj) – able to generate money
    Example:

    Real estate is a lucrative business.


  5. outperform / ˌaʊtpɚˈfoɚm / (v) – to have a better performance than someone/something
    Example:

    The company outperformed its competitor in terms of sales.


Article

Read the text below.

Apple has become the first US public company to reach the $1 trillion market capitalization.


In early August, the shares of the tech giant climbed to 2.9% and closed at $207.39 per share—a figure that surpassed investors’ target of $203.45 per share. The increase in shares took place following Apple’s report on its strong earnings for the third quarter.


The $1 trillion mark is a milestone for Apple because the trillion range is usually attained only by national governments. For instance, the 2018 US government’s budget includes a forecasted revenue of $3.6 trillion and a total spending of $4 trillion.


Dan Ives, an analyst from marketing insights firm GBH Insights, perceives the victory as an opportunity for Apple to further grow and become more lucrative.


Apple’s achievement is also considered a win for the company’s CEO, Tim Cook. Critics doubted Cook’s capabilities when he took over the tech giant in 2011 after former CEO Steve Jobs resigned due to health reasons. However, investors finally acknowledged Cook’s progressive leadership as the company displayed strong financial results worldwide, even in China where the competition is tight.


Despite its victory, Apple was defeated by Chinese tech company Huawei / ˈhwɑːweɪ / as the second-biggest smartphone developer after Korean tech giant Samsung, which maintained its top spot. Only Huawei was able to outperform one of the top two smartphone developers after seven years.


Huawei’s success is attributed to its increasing European market share. Nevertheless, experts predict that Apple will once again surpass Huawei, and maybe Samsung, after new product releases in a few quarters.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think Apple’s milestone will attract more consumers? Why or why not?
• What do you think Apple should do to surpass Huawei (e.g. strengthen its advertising)?

Discussion B

• In your opinion, is the increase in sales the only indicator of a company’s success? Explain.
• If you were a business owner, how would you attract investors? Discuss.