The price escalation has widened Apple's profit margins to the delight of investors, who have boosted the company's market value by about $83 billion -nearly equal to the entire market value of American Express - since the quarterly report came out late Tuesday. During the session, Apple's stock market value reached as much as $1.006 trillion.
With a closing price of $207.39 on Thursday, Apple became the first publicly listed US company to ever reach $1 trillion in market capitalization. Apple's rising share price also speaks to the company's impressive ability to keep consumers interested in the iPhone, an impressive feat given that Apple's smartphone has now been around for more than 10 years. Chinese oil company PetroChina reached a $1 trillion valuation in 2007 before seeing its value drop to around $260 billion during the global financial crisis of 2008. Amazon is worth almost $900 billion while Google and Microsoft are each now worth more than $800 billion. Currently, Apple stock is trading at $207.93 in the extended trading hours. While year-over-year iPhone sales increased by just 1% this past quarter, iPhone-based revenue jumped by a whopping 20%.
The amount of payout to Cook every year can vary significantly depending on where Apple stands relative to other companies in the S&P 500 index.
"While we have much to be proud of in this achievement, it's not the most important measure of our success", Cook wrote.
Together with Facebook (FB.O), the five largest USA companies account for 15 percent of the S&P 500.
Cook has put a focus on digital content and services, positioning Apple to make money from music, movies, apps, subscriptions and more - all sold to the vast "install base" of people using devices made by the company.
"Steve founded Apple on the belief that the power of human creativity can solve even the biggest challenges - and that the people who are insane enough to think they can change the world are the ones who do", Cook wrote.