Over the last few weeks, the tech industry has been the centre of attention on the US stock market. Facebook and Twitter have both reported a 20% drop in their share price. At the same time, despite a weak quarterly report from Tesla (the company doubled its quarterly losses in Q2 to 717.5m USD), its share price still grew by 18% in the space of two days. Clearly, investors still believe in Elon Musk’s electric car revolution.
The biggest piece of news from the tech sector, however, is that Apple’s market cap reached one trillion USD yesterday. This was facilitated by Apple’s strong performance in Q2, which saw the company’s revenue grow by 17% YoY to reach 53.26m USD. It’s worth noting that this growth can mostly be explained by an increase in prices. iPhone prices have risen by 19%, while the number of units sold has only risen by 1%. Apple is backed, first and foremost, by its quality products. Despite the industry’s increasing competitiveness, the iPhone and iPad remain at the top of the gadgets list. By our estimation, Apple’s share price could continue to rise even further.