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Apple shares now cost more than iPads

Image: TPG/AP/Press Association Images

BUYING A SINGLE share in Apple Inc would now cost you more than an iPad 2.

The technology giant’s stock broke the $500 barrier on US stock markets today after weeks on the rise. It means that an Apple share is now worth more than the company’s flagship product – the basic iPad 2 retails in the US for $499.

This is  the latest step in a rally that began more than two weeks ago, when the company reported staggering sales and profits for the last quarter.

Apple Inc has been trading positions as the most valuable company in the world with Exxon Mobil since last summer, but the latest rally has made it 17 percent more valuable than the oil company. Apple’s market capitalisation is now $465 billion, compared to Exxon’s $400 billion.

On January 24, Apple posted net income of $13.06 billion for the quarter that ended in December, more than doubling its profits from the year before. Sales were $46.3 billion, up 73 percent from a year ago.

It emerged last year that Apple’s iPhone generates an incredible 52 per cent of the entire mobile phone industry’s profits – despite accounting for only 4.2 per cent of handset sales.

- Additional reporting from AP

More: Apple iPhone makes half of entire mobile industry’s profits>

Read: iPhone sales soar and profits double at Apple>

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Comments (11 Comments)

  • Danny D 13/02/12 #
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    Makes you bang your head against the wall for not buying them for $7 in 2003…

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  • Eoin 13/02/12 #
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    I’m waiting till shares 3.0 are launched.

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  • jimbo 13/02/12 #
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    Is there not an app for that?

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  • fizi_water 13/02/12 #
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    I owned literally almost every smartphone (from the top ones) to date and currently back to iPhone. Not an apple fanboy, but let’s face it, their products just work, really service free and iPhone is still best all-rounder, while not necessarily best phone for every situation – I know some androids are fab too. Apple just nailed what people want and need fantastic business they did, nobody denies that.

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  • @aidoroch 13/02/12 #
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    technology dictates that this is a fad. like dot com booms Apple will eventually hit a brick wall or something else will come along.

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  • Dave Looney 13/02/12 #
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    A fad? ‘cos apple are a one hit wonder ….. Until their next one hit wonder .which will follow the multitude of one hit wonders they have had over the years!

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  • Eric 13/02/12 #
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    Apple’s continued upward trajectory really is quite remarkable considering that they were on the brink of going out of business.

    Their success can be attributed to a number of factors , notably, a usability driven design philosophy compared to the engineering driven designs of Microsoft , Dell, Creative etc who seem intent on making products which are as hard to use as they were to develop.

    They have great leadership in Tim Cook and Jony Ive , and a highly optimised ( although ethically questionable) supply chain. They don’t need Steve Jobs to stay ahead.

    They have the highest customer retention rate of any electronics brand. They keep you upgrading by making you really happy with your current purchase than by making you really unhappy with it.

    And finally – markups ! The profits Apple made in 2011 were actually hard to believe , and most of it can be attributed to the fact that the RRP of their products is on average double the bill of materials for each product.

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  • Eimear Lavery 13/02/12 #
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    I ❤ Apple.

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  • Ronan Glynn 13/02/12 #
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    I love my iPhone, but that photo does remind me of one of those sci-fi films were we all live in a society were a corporation has taken over and we all walk around in uniform with “our leader/profit” chanting positive slogans at us from a big screen.

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  • Report this comment

    I pad 3 bring it on

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