Apple, founded in 1976 by Steven P. Jobs and Steve Wozniak, is not just the world’s largest technology company; it is the world’s most highly valued public company.
Over the last decade, Apple has redefined the music business through the iPod, the cellphone business through the iPhone and the entertainment and media world through the iPad.
On Oct. 5, 2011, the company announced the death of Mr. Jobs, after a long battle with pancreatic cancer. Rarely has a major company and industry been so dominated by a single individual, and Mr. Jobs’s influence went far beyond the iconic personal computers that were Apple’s principal product for its first 20 years. Again and again, Mr. Jobs gambled that he knew what the customer wanted, and again and again he was right.
The death of Mr. Jobs stirred deep emotions inside and outside Apple and raised concerns about whether the company can, in the long run, continue its remarkable streak of hits.
In August 2011, Apple named Timothy D. Cook as the company’s chief executive.
Although, Apple already boasted the largest market value of any public company, on Aug. 20, 2012, it became the most highly valued public company ever.
With a surge in its share price, Apple broke the record for the biggest market capitalization, $616.34 billion, set by Microsoft on Dec. 27, 1999.
In September 2012, Apple introduced the iPhone 5, which has a larger screen, faster wireless Internet speeds and a more powerful chip. Just three days after its release, Apple said it had sold five million new iPhones. The iPhone has become a gold mine for Apple, accounting for $16.2 billion in sales, or 46 percent of Apple’s total revenue.
In October, the company unveiled its new iPad Mini, which issmaller and lighter than its predecessor, the iPad. Its screen is 7.9 diagonal inches, making its surface area significantly smaller than the current 9.7-inch iPad.
Apple performed strongly through the end of the year, posting a $13.1 billion profit for the fourth quarter of 2012, as it sold 28 percent more iPhones and 48 percent more iPads, its two biggest products. But its share price sagged, as keeping up its heady growth rate has become harder and harder.
The company is dealing with increased competition from big rivals like Samsung and Google, and with so many people already using smartphones, the market is not quite as untapped as it once was. And Apple is forging into cheaper product categories, meaning lower profit margins.