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Tim Cook becomes a billionaire as Apple nears $2 trillion valuation

Tim Cook - Pete Marovich  /Bloomberg News  
Tim Cook - Pete Marovich /Bloomberg News

Apple boss Tim Cook has become a dollar billionaire after a share surge took the iPhone maker within striking distance of a historic $2 trillion (£1.5 trillion) valuation.

The former chief operating officer, who took over as chief executive in 2011 following the death of founder Steve Jobs, joins a growing group of tech bosses who are enjoying huge increases in wealth during the pandemic.

Apple shares have surged 48pc so far this year as demand for digital products exploded during lockdowns, giving the business a value of $1.9 trillion.

Mr Cook, 59, earned $125m in 2019 and owns 847,969 shares in Apple worth $378m. Calculations from Bloomberg Billionaires Index based on his holdings and previous compensation suggest he is now in the elite billionaire club.

Mr Cook said in 2015 that he plans to give most of his fortune away, and he has already gifted Apple shares worth millions of dollars. His wealth could be lower if he has made other undisclosed charitable gifts.

The chief executive's stake is small compared with the mammoth stock positions held by Silicon Valley founders such as Facebook's Mark Zuckerberg, who last week saw his personal wealth hit $100bn.

Apple shares are distributed widely among different investors and executives, so the world’s most valuable company has minted very few billionaires among its employees.

However, the company is on the brink of becoming the world’s first $2 trillion company after it revealed an 11pc increase in revenue to $59.7bn for the three months to the end of June, defying analyst expectations. In 2011, Apple was worth $350bn.

Shares closed 1.4pc higher on Monday at $450.91, valuing Apple at $1.93 trillion.

Apple revenues
Apple revenues

Hussein Kanji, a partner at venture capital firm Hoxton Ventures who expressed caution about Apple’s long-term outlook after Jobs left, said: “This tech cycle has been way bigger and longer than I thought.

“Out of all these stocks, Apple has become the greatest cash generation machine in history."

The company’s surging value has been driven by a jump in demand for apps, along with its iPads and Mac computers, during a period in which office staff around the world shifted to home working.

Even Apple's decision to delay the annual September launch of the next iPhone due to Covid supply chain complications failed to dent investor enthusiasm. The smartphone is expected to be the company’s first foray into 5G devices.

Apple's growing power under Mr Cook has not gone unnoticed. He found himself under intense scrutiny alongside the bosses of Amazon, Google and Facebook in a hearing before US Congress last month.

Mr Cook was quizzed on the far-reaching influence of tech titans along with counterparts Jeff Bezos, Sundar Pichai and Mr Zuckerberg. They were accused of acting as “cyber barons” by unfairly stomping on competitors.

The quartet's recent success stands in contrast to the economic upheaval caused by the coronavirus, which has triggered a growing string of bankruptcies, left tens of millions of people unemployed and sparked a huge jump in public deficits.