Apple’s Incredible Stock Rise and GE’s Spectacular Fall

Apple's recent surge in stock price following the release of better-than-expected results has created over $111 billion in value, exceeding the market capitalization of General Electric (GE). This reversal in fortune highlights the differences between the two companies, their priorities, and what investors deem valuable. 

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Apple's success, particularly in its iPhone sales and its success in China, highlights the importance of products over finance, and the benefits of expanding addressable markets. 

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Conversely, GE's decision to expand its finance arm before the 2008 financial crisis highlights the risks of prioritizing finance over products.

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Apple's focus on innovation in technology has resulted in an expanding market that has grown to more than $1 trillion a year, demonstrating the importance of creating a market that can grow. In contrast, the size of the global economy limits the potential for growth in the finance sector. 

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Additionally, the world's growing digital reliance has led to a greater demand for software and services over hardware, further benefiting companies like Apple.

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Despite its success, Apple should proceed with caution in its attempts to increase revenue through financial services. The lessons from GE's experience demonstrate the potential risks of prioritizing finance and the benefits of focusing on products and innovation.

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