04 May 2012

How big is Apple?

In the wake of the stupendous success of its technology products, especially the iPhone and iPad, Apple is touted as the most iconic tech company on the planet. 

Also, soaring revenues have pushed Apple's share price to an all-time high of U.S.$573, giving the company a Market Capitalisation (M-Cap) of over U.S.$536 billion (as of today).

It is believed that its M-Cap is likely to touch U.S.$1 trillion (1 trillion = 1000 billion), which will make it the first such company in business history to touch the magical U.S.$1 trillion. To put this figure in perspective, it will be over 50% of India's GDP of U.S.$1.6 trillion.

What is Market Capitalisation?
The best way to understand it is through an equation:

Market Capitalisation = Number of Issued Shares x Market Price of Each Share.

For example, if a company has issued 1,00,000 shares (one lakh shares) and the current price of each of these shares is Rs50, then the 
Market Capitalisation of this company will be Rs50,00,000 (Fifty Lakh).

I found this superb infographic on the
Best Computer Science Degrees Web site.


Charvaka said...

Srilanka is marked wrong in the world map in the info-graphic where the GDP of countries is given.

hayat ali said...

excellent information sir...Thank you..