Stock app of the Apple Inc. has incorrectly made the tech giant the world's first trillion-dollar company. The share price of the company started in the garage of co-founder Steve Jobs in 1976 has been hovering around the $1 trillion mark for a while. But the news articles across the globe which claimed that the company has crossed the $1 trillion mark in market cap turned out to be wrong because of a technical fault with the app built into the iPhone.
This week the company had announced its-better-than expected results, Apple bought back some of its shares. The step led to the stock price go up from around $204 to $207. But due to a delay in the update in own Stocks app, the small surge in the share price showed the company to have crossed the $1 trillion -- even though in reality it has not.
Yahoo Finance provides the share price data on iPhone which is bundled with the iPhone as well as into Siri, which means if someone asks Siri for the current value of the share price of Apple it will tell them the wrong answer. The Apple is yet to make a correction in its app.
Though the psychological level of $ 1 trillion dollar mark is an imperative milestone it would hardly make a difference to the company along with its shareholders. But the confusion has played as a catalyst in the company's market value.
The glitch happened due to Apple's plan to buy back substantial share – which allows it to give the money back to investors; meant that some of its shares were destroyed. The shares were then taken out of the circulation which meant that the number of issued shares went down, increasing the value of the share.
A company's market capitalisation is calculated by multiplying its share price by a number of outstanding shares. It means since there are fewer issued shares, the price required to make the company worth a trillion would be far higher.
According to the company's own Stocks app, at the time of filing the story, Apple's shares stood at $205.18, after soaring $3.73 on Thursday morning. To become a trillion dollar company it has to reach a level of $207.05.