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Apple is a publicly owned company meaning that its shares are publicly available on the market. As a publicly held company, they have legal obligations to disclose certain information to their shareholders (which effectively means they share it with everyone). Apple owns numerous subsidiaries and they are not required to disclose each and every one although the information would probably be available if you were peruse their financial reports with enough scrutiny.
If a private company has Apple as an investor, they do not have to disclose information like a public company. Apple has to disclose what they know, but private companies can enter private arrangements with investors. Now if Apple starts a company as a subsidiary, it falls under the same rules as Apple does and their information is included with Apple’s.
Apple Becomes World’s 1st Private-Sector Company Worth $1 Trillion
Apple became the first private-sector company in history to be worth $1 trillion, after its share price reached an all-time high above $207 on Thursday.
The share price jumped by more than 8 percent this week after Apple reported impressive quarterly earnings on Tuesday, driven largely by strong sales for high-priced iPhones. In a call with investors, CEO Tim Cook also touted growth in other areas such as smart home products, wearable and services like the App Store and Apple Pay.
The $1 trillion milestone is largely symbolic, though impressive. Apple’s market capitalization — a common financial measure of worth that multiplies the number of shares by the share price — makes the company worth more than the economies of, for example, Saudi Arabia, Switzerland and Taiwan.
The tech company, launched from a garage in 1976, has been on a steady climb through the years, revolutionizing personal computers and phones with its Macs and iPhones. In recent years, Apple has been working to spread its cult-like following to newer devices like smartwatches, cordless headphones and smart home speakers.
PetroChina once had a $1 trillion valuation, but only briefly, and most of its shares were owned by the Chinese government.
Other technology companies with high-flying, trendy stocks are expected to join Apple in the $1 trillion club before long. In recent years, the financial world considered Amazon and Apple to be in the race toward the milestone. On Thursday, Apple finished first.
Is Apple, Inc. a private company? Is it possible that it owns or operates many companies privately?
I own some Apple stock, so no it is not a private company (closely held and not publicly traded).
As for subsidiaries, simply go to SEC EDGAR and search for 10Ks and 10Qs. Read the hell out of them and you will find most subsidiaries.
If you are trying to determine if a potential vendor or customer really is part of Apple, then search them in Edgar and on Google. Make sure you know the source of the information
Apple cannot buy all the stock, because the market-cap is half a trillion dollars, and all they have in the bank is a measly two hundred billion.
But Apple are buying-up their own stock. Whenever the share price falters, Apple are using that spare cash to turn into Apple shares.
The risk for Apple is not that they will die. The risk is that they become IBM.
A long time ago, a really long time ago, IBM was a very cool company. It was THE computer company. Everyone wanted to work for them. Everyone wanted to buy their products. Then they became too large, too old, too stale and too corporate. They essentially became a utility company.
Fairly long time go, Microsoft was a really cool company. Just like IBM, they had tremendous growth and they were at the leading edge. Yes, they were controversial, but so was IBM for those who still remember. Microsoft eventually went the same route as IBM. They became too big and stale. They became boring. They became IBM. They are still making good money. But their share price is not likely to double any time soon.
Apple has been impressive in that they maintained both growth and a cool image even after they became one of the largest companies in the world. But the rules of the game changes when you’re one of the largest. Keeping up stock price increases of 50-100% per year is simply not sustainable. Maintaining a cool, rebel image is not easy either.
Apple will not die. Apple will not stop making money. But they still very much risk becoming just another IBM. The company that used to be cool, but is now all corporate. A defensive company just trying to defend from smaller rivals, suing everyone in sight.
This is nothing against Apple. It’s a highly impressive company.
This is likely to happen to any company growing to such a size. Apple will likely go the way of IBM and Microsoft and become just another boring, slow moving, litigation happy corporate entity. A utility.