Apple stock hits historic $700 milestone in 2012
Record iPhone 5 sales propel Apple to become world's most valuable company
1Record iPhone sales drive surge
Apple's stock surpassed $700 per share in after-hours trading on September 17, 2012, following record iPhone 5 preorders of 2 million units in just 24 hours. This represented a 65% increase in stock value from the beginning of the year. The milestone cemented Apple's position as the world's most valuable publicly traded company at the time, surpassing previous tech giants like Microsoft and ExxonMobil.
2Rapid market cap growth
Apple's market capitalization grew from $500 billion in February 2012 to over $650 billion by September 2012. At its peak, Apple was worth more than second-place ExxonMobil plus Google's entire net worth combined. This remarkable growth occurred just six years after Apple had surpassed Dell's valuation, whose founder had once suggested Apple should be shut down.
3Historical context of growth
The $700 milestone came just 12 years after Apple's stock had fallen to $12.88 per share in September 2000. Between 2006 and 2012, Apple sequentially surpassed Dell, Microsoft, and ExxonMobil in market valuation. The company briefly became the world's most valuable company in August 2011 before solidifying that position in 2012 with its record stock performance.
4Post-2012 milestones
Apple continued its growth trajectory, becoming the first U.S. company to reach $1 trillion, $2 trillion, and briefly $3 trillion market valuations. As of 2023, Apple's market cap approaches $5 trillion, though stock splits in 2014 (7-to-1) and 2020 (4-to-1) make direct share price comparisons with the 2012 $700 milestone misleading.
5Current market position
Despite its continued growth, Apple has recently been surpassed in market valuation by AI-focused companies like Nvidia and Microsoft. As of publication, Apple maintains a $4.86 trillion market cap, making it the world's second most valuable public company. Nvidia currently leads, with Alphabet, Microsoft, and Amazon completing the top five most valuable tech companies.
6Stock split impact
Apple's 2014 and 2020 stock splits significantly altered its per-share price while maintaining overall market capitalization. The 7-to-1 split in 2014 and 4-to-1 split in 2020 mean that Apple's current $333 share price would equate to approximately $9,324 pre-split, demonstrating the company's substantial growth since its $700 milestone in 2012.
7Competitive landscape shifts
Apple's 2012 dominance came as the smartphone market was expanding rapidly. Today, the competitive landscape has shifted toward AI and cloud computing, with companies like Nvidia benefiting from AI chip demand. This technological shift has challenged Apple's position at the top, though it remains one of the most valuable companies globally.
8Product-driven valuation
The 2012 stock surge was directly tied to iPhone 5 success, demonstrating Apple's product-driven valuation model. This pattern continued with subsequent hits like the Apple Watch and services growth. However, recent years have shown increased investor focus on companies with strong AI and cloud computing offerings rather than hardware-centric models.
9Historical comparisons
When Apple hit $700 in 2012, it was worth more than the combined value of 496 S&P 500 companies. The company's growth since its near-bankruptcy in the 1990s remains one of the most remarkable corporate turnarounds in history, transforming from a niche computer manufacturer to the world's most valuable company within 15 years.
10Enduring market influence
While no longer the absolute leader, Apple's market movements continue to significantly impact global indices and investor sentiment. The company's ability to maintain trillion-dollar valuations for over a decade demonstrates the lasting power of its brand, ecosystem, and ability to monetize its user base through both hardware and services.
Original article: Cult of Mac — Apple stock hits historic $700 milestone in 2012