back to article iPad 3 launch news pushes Apple shares to $500bn high

Apple's share value hit an unprecedented $500bn in pre-market trading this morning, making the company worth more than Poland and many other things. The spike followed just hours after the firm sent out an emailed invite to the iPad 3 launch. Anticipation over the new fondleslab, due to be unveiled on 7 March, sent speculators …

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  1. Tom 15

    Errm...

    I know it was only a joke but Apple's not worth more than Poland... Apple's total value is $500bn whilst Poland's annual income is just under $500bn.

    1. Anonymous Coward
      Anonymous Coward

      Re: Errm...

      You won't be saying that when it becomes public knowledge that apple have bought poland. It's the logical next move for them - after all, they're noted for making things shiny, and what's the best thing in the world for making stuff shiny? That's right. Polish.

      1. Morphius

        Re: Re: Errm...

        I would just like to say that I upvoted this... although I did so while groaning!

      2. Crofty616
        Thumb Up

        Re: Re: Errm...

        I laughed far more than I should have at that... :P

      3. Blusox69

        Re: Re: Errm...

        I think they would be more likely to buy iRaq or iRan

    2. James Micallef Silver badge
      Boffin

      Re: Errm...

      Wrong comparison - Poland's GDP should be compared to Apple's annual profit since it's a measure of productivity in one year. Apple's profit for 2011 was $26 bn.

      That would still make Apple richer than about half the countries in the world!!!

      1. This post has been deleted by its author

      2. a_been
        Boffin

        Re: Re: Errm...

        GDP is based on turnover not value added. It is the sum of all trading not the sum of all wealth creation. Which is why if you sue MacDonald for a few million for serving coffee that is to hot, that gets added to the GDP even though no wealth has been created.

        A better example would be to compare the increase in Poland's GDP vs Apples profits or even better the increased value to Poland's capital structure vs Apples profits.

  2. JDX Gold badge

    Balls

    I thought about investing in Apple a year or so ago, but figured they were riding the crest of the wave already and would be struggling with Android gaining maturity.

    bugger.

    1. jai

      Re: Balls

      i thought about investing in them 10 years ago when i got my first bonus in my first job

      but as it would have only gotten me about 10 shares i thought it wasn't worth it, as it wouldn't earn me _that_ much if it go up in value :(

      1. Dale 3
        Pint

        Re: Re: Balls

        Well I DID invest, and I am the proud owner of 5 shares. If the rumours turn out to be true, £6.26 of that $7B dividend is mine! (Less 15% dividend tax, of course.) Drinks all round.

        1. Steve Todd

          Re: Re: Re: Balls

          Better off than you thought. Splitting $7,000M by 932.37M shares outstanding = $7.5077 per share. Five shares * $7.5077 = $37.54. At current exchange rates that's about £23.50 (less tax). Don't spend it all at once/

        2. Anonymous Coward
          Anonymous Coward

          Re: £6.26 of that $7B dividend is mine! (Less 15% dividend tax, of course.) Drinks all round.

          If you're talking London prices, you'll be lucky to get a pint and a half out of that.

          1. Goldmember
            Pint

            Re: Re: £6.26 of that $7B dividend is mine! (Less 15% dividend tax, of course.) Drinks all round.

            "pint and a half"

            Half? Of a pint? Never heard of it.

  3. Tim Worstal

    Oh come on, please.....

    "Apple's share value hit an unprecedented $500bn in pre-marketing trading this morning, making the company worth more than Poland"

    Simply not true as any fule kno.

    You cannot buy Poland for $500 billion. You can buy Apple for $500 billion (well, alright, maybe a takeover premium).

    Because $500 billion is the GDP of Poland. That is, it's the value added in the Polish economy each year.

    Apple's $500 billion is the net discounted value of all the value that Apple will produce in the future. This is comparing a flow with a stock.

    The accurate comparison is profits plus wages paid for the company as against the GDP of a country. A more accurate comarison would this be that Apple is similar to Luxembourg ($55 billion GDP, couple of hundred thousand people in the labour force).

    1. Anonymous Coward
      Anonymous Coward

      Re: Oh come on, please.....

      Very true but it's no different from the countless inaccurate Android vs iPhone comparisons i.e. an OS vs a phone

    2. MD Rackham

      Re: Oh come on, please.....

      Oh, I dunno. I met this guy in the bar last night who is willing to sell me Poland for just $10,000 cash. And that includes all their bridges!

      1. Local Group
        Happy

        Re: Re: Oh come on, please.....

        If that package included the Brooklynski Bridge over the Vistula, I hope you grabbed it.

  4. Audrey S. Thackeray

    Are these people idiots?

    Why would a public announcement of the impending launch have any influence over a decision on whether or not to invest in Apple?

    If you are waiting for that sort of thing before making a move I don't want you managing my money.

    1. Andrew James

      Re: Are these people idiots?

      The thing that finally makes your mind up, maybe.

      Announcement of impending launch = right if there was ever a time, this would be it. Buy now, sell on March 7th immediately after the launch of better magical device than magical device already out there. Hope to make some cash in the process.

      To be honest, you could look at Apple product launch cycles and easily predict that buying mid February and mid August would be a pretty good bet to tie in with ipad and iPhone announcements and cash in a couple of weeks later.

    2. Local Group
      Happy

      Re: Are these people idiots?

      It's called buy on Wednesday, sell on Thursday. Make tuition for your kid at Harvard without really trying.

  5. Velv
    Mushroom

    Since the shareholders didn't buy the shares for the dividend (it's well know no divi is normally paid and you are buying them for their growth), perhaps Apple should make a philanthropic gesture with the $7bn instead.

    Like that's going to happen...

    1. Anonymous Coward
      Anonymous Coward

      Sort of happening

      a little bit

      http://www.wired.com/epicenter/2011/09/cook-brings-philanthropy-back/

    2. Ed 11

      I don't buy shares for the management of said company to make charitable decisions - that isn't what they are paid for and it is unlikely to play to their skill set. I buy shares I think will maximise my personal wealth. Any philanthropic decisions should be made by the ultimate owners of the wealth when it has been returned to them either via capital gains or dividend income.

  6. W.O.Frobozz
    Mushroom

    So...

    ..at what point does Apple fall prey to the Osborne Effect? Or can the Osborne Effect be countered by slathering enough gloss on a fondleslab?

    1. jubtastic1

      Re: So...

      They're notorious for not announcing anything before its ready for sale, with caveats, like when they're entering a new market and announcing it 6 months early allows devs to get on board, disrupts the market they're entering and obviously isn't going to impact their own sales.

      Media rumours on the other hand could potentially create such an effect, if an expected product doesn't live up to the hype, yet the 4S not being a 5 would seem to fit that bill and it doesn't seem to have suffered any for it.

      TL;DR, don't bet on it.

  7. Charlie Clark Silver badge

    Point of order

    Companies usually get bullied into paying dividends if investors think the price is too low. As long as people are still able to sell shares for a profit there is little incentive for Apple to do anything.

  8. Eddy Ito

    Prefer a split

    Dividends are nice but a stock split isn't subject to the taxes a dividend would be. A nice 3 for 2 split would still keep the price fairly high and keep it out of the hands of the high frequency traders while giving the shareholders a little something extra that they can do with as they please.

    1. kjrunner
      WTF?

      Re: Prefer a split

      I don't get your reference. A split does not give shareholders anything additional. The own the same claim on the company as before.

      In addition do think that those involved in high frequency trading do not have the capital to trade a stock worth what AAPL is. I venture to guess they can trade even AAPL by the 1000s of shares.

  9. Anonymous Coward
    Anonymous Coward

    Hang on a minute!

    There's been an official Apple communique setting out the date the iPad 3 is going to be released? This morning? And where the hell was the new article for that?!

    For goodness sake, you've been publishing god know how many contradictory rumours about what it'll be and when it'll be released for months now, and then you totally ignore the actual official announcement? FFS El Reg!

    1. Andrew James

      Re: Hang on a minute!

      You know the announcement was yesterday, right? Its been a long day. I cant tell how sarcastic you're being.

      1. Andrew James

        Re: Re: Hang on a minute!

        Just in case you are serious...

        http://www.theregister.co.uk/2012/02/28/apple_ipad_event/

        1. Local Group
          Happy

          Re: Re: Re: Hang on a minute!

          What's the point of being sarcastic if you have to make an announcement every time you are?

          Sarcasm delights the sarcastor, not the sarcastee.

  10. Greg J Preece

    I don't want to live...

    ...on this planet any more.

  11. JDX Gold badge

    Maybe they can't buy Poland...

    ... but I bet they could buy Greece.

    1. Michael Thibault

      Re: Maybe they can't buy Poland...

      Would that be because between the Polish and the shiny is the elbow Greece?

      Where's the upgroan icon?

  12. aThingOrTwo

    It's easy to mock if you still don't grasp Apple

    Most people commentating on here still don't grasp Apple (I braced for the replies for this "they sell shiny trinkets" etc. etc. etc.)

    You think the company is like a giant scam, conning the customer. Built on foundations of hype and marketing with no real technical competence underneath.

    A lot of highly, skilled, technically minded people have no time or interest in UI, HCI and good design and find the whole area a bit wooly. And that is fine - no one has a problem with that.

    Where I have a problems is when it is dismissed as not important. Just because you don't think the things Apple values (i.e. usability and design) are unimportant, it doesn't mean that (many) other people don't fund them important or of value.

    There was a picture the late Steve Jobs used use: it was of a signpost with two directions labelled: one arrow pointed to “Technology”, the other to “Liberal Arts”. He said Apple stood at the intersection of these two worlds. And I think that is a more accurate way to think of Apple, rather than aforementioned purveyor shiny toys.

    If other companies poured in the same laser like focus and attention to detail to their products, then maybe, just maybe Apple wouldn't be making it look so easy to make money.

    There:

    Now I don't know why I bothered with that. I know I'll wake up tomorrow to find a big red thumbs down and the number "52" (or higher).

    1. Sean Timarco Baggaley
      Thumb Up

      Re: It's easy to mock if you still don't grasp Apple

      I agree with you.

      What's truly mystifying is that the exact same rules that underlie good good product design, HCI design, UI design also apply to good software design, engineering and more. In fact, if you're designing anything that involves getting one or more complex systems to work with each other, you're going to find the same fundamental laws apply.

      Last time I checked, humans were complex systems too.

      There is an above average incidence of Autism Spectrum Disorders in the "techie" community, which certainly explains a lot. Grokking computers is a lot easier than grokking people when you have an ASD.

  13. Tony Paulazzo
    Happy

    So I'm fucking autistic, thanks for the heads up

    Shiny Happy People

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