Apple, World's Most Valuable Tech Company, Bumps AT&T Off of the DOW Index

From DailyTech: In an ironic twist America's second largest cellular carrier, AT&T, Inc. (T) was bumped from the Dow Jones Industrial Average this week by an iconic brand who once helped drive its value with an exclusivity arrangement -- Apple, Inc. (AAPL). Apple who makes the wildly successful iPad tablet computer, iPhone smartphone, iPod portable media player, and Mac computer line (as well as numerous other lesser products) joins the ranking for the first time.

Devised by iconic Wall Street Journal editor Charles Dow, the Dow Jones Industrial Average was a listing of the cumulative value of the most valuable companies whoses shares are publicly listed on the New York Stock Exchange (NYSE). The name pays tribute to eminent late nineteenth century Edward Davis Jones, who cofounded the Dow Jones & Company financial service in 1882 with Dow. Originally a listing of 12 companies, the Dow expanded to 20 companies in 1916 and then to 30 companies in 1928 where it has remained fixed ever since.

Some might wonder why it took so long for Apple to join the Dow. For several years Apple has been rated as the most valuable brand in the world. Apple is also by far the most valuable company in the U.S. in terms of market cap, with a current valuation of $736.60B USD. Apple was also the first American company to break $700B USD in market valuation, not adjusted for inflation.

Adjusting for inflation, though, its dominance looks a little less absolute as other tech companies have historically seen higher valuations adjusting for inflation. Int'l Business Machines Corp. (IBM) in 1967 had a value of $193B USD, which is about $1.35T USD in 2015 dollars. (The Motley Fool carries a good writeup on inflation adjusted market caps.)

Microsoft Corp. (MSFT) was worth $620.6B USD in 1999 -- about $870.6B USD. General Electric Comp. (GE) had a market cap of $507B USD back in Dec. 1999 -- around $710B USD in today's money. GE and IBM were in and out of the Dow multiple times as their fortunes shifted up and down over the course of the twentieth century. GE first entered the Dow in 1896. IBM entered in 1932.

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