Apple’s Market Capitalization Exceeds Almost Any Stock Exchange in the World

Have you ever heard of Dimensional’s Matrix Book? This is not about any science fiction where Keanu Reeves eliminates villains, but rather an annual review of global returns that emphasizes the strength of complex investing. It is a fascinating document in which we can look at the compound growth rate of the S&P 500 index for each year since 1926.

On page 74, there is a chapter on the capitalization of the global stock market, which lists the market capitalization of most of the world, country by country. It probably won’t surprise you that the U.S. is the global leader in stock market value, specifically, its wealth of $40 trillion is nearly 60 percent of the value of all stocks in the world.

For comparison, Japan’s market capitalization is $4.1 trillion, the United Kingdom’s is $2.6 trillion, China’s is $2.5 trillion, and Canada’s is $2.1 trillion. Not only is Apple with its $2.72 trillion market capitalization larger than all 595 companies listed in the United Kingdom, but it is also larger than all companies in France (235 companies) and India (1242 companies).

Apple is twice the size of the entire German stock market, with 255 companies. Germany, with a $1.3 trillion market capitalization, for example, is by far the largest country in Europe by GDP, but its stock market is smaller than that of the United Kingdom, France, and Italy.

This partially reflects the fact that there are fewer companies listed on the stock exchange than in the United Kingdom, but also because Germany has companies that are more value-oriented. As a result, its market multiple (the price investors pay for a profit worth one dollar or euro) is significantly lower than that in the U.S.

Regardless: Is Apple larger than the entire British stock market? Twice the size of the entire German market? That is truly incredible – and that’s not all.

iPhone Accounts for 50 Percent of Sales

Of the 72 largest stock exchanges in the world, only 11 have a market capitalization greater than Apple’s. The company’s market share has reached $2.72 trillion, as we have already mentioned, and the stock price has also increased by nearly 300 percent in the last five years.

And how could it not, when more than two billion people use its products, and according to Statista, it is the second most profitable company in the world. Apple has changed the game in every segment it has entered, from the introduction of the iPod in 2001 to claiming the throne in the smartphone world in 2007 with the launch of the iPhone. In the meantime, the iPad, Apple Watch, and numerous other products have been launched by the company.

Interestingly, about 50 percent of Apple’s sales come from iPhone sales, ten percent from Mac computers, watches, headphones, and chargers, and seven percent comes from the iPad. Apple’s services are also continuously growing and now contribute nearly 20 percent of the company’s market share.

Since the iPhone contributes the most to Apple’s revenues and is its mainstay, it is interesting to compare it with the competition. For example, the market leader by sales volume is Samsung. However, the South Korean manufacturer operates and competes in all price segments, unlike Apple, which deals exclusively with luxury smartphones.

According to the International Data Corporation (IDC), Apple’s average selling price has reached $974, which is even three times higher than Samsung’s.