Buoyed by its iPhone, iPad and Mac sales, Apple appears on course to exceed Exxon’s market value. When it does most professional money managers will have to shift their holdings to reflect Apple’s new weighting in the tech index. Apple shares may climb further in value while Exxon’s fall as a result of such predicted activity.
“As people buy the iPad and get accustomed to it, it may become their primary PC device,” said Toan Tran, an analyst at Morningstar.
“The list of companies that have sat atop the S&P 500 is short. For years, the top spot rotated among stalwart industrials like General Electric Co., General Motors, and AT&T Inc., before that company was broken up as a result of an antitrust suit in 1984. Twenty years ago, IBM Corp. held the No. 1 position, narrowly beating out Exxon.“
Apple closed on Friday at $282.52. It must see its shares climb approximately 12 per cent to overtake Exxon.