Apple to Replace AT&T in Dow Jones Industrial Average on March 18

Apple LogoApple will be joining the Dow Jones Industrial Average, according to S&P Dow Jones (via The Wall Street Journal). Apple will be added to the Dow Jones at the close of trading on March 18, replacing AT&T as one of 30 members on the major price-weighted index. Apple is listed on Nasdaq with a pre-market share price hovering around the $128 mark as of this writing.

“Apple is the clear choice for the Dow Jones Industrial Average, the most recognized stock market measure,” says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices.

The addition of Apple on the Dow Jones Industrial Average will occur just weeks after the iPhone maker recorded the most profitable quarter of any company ever, posting record-breaking quarterly revenue of $74.6 billion and quarterly net profit of $18 billion on sales of 74.5 million iPhones during the first quarter of the fiscal year. Apple is currently the world's most valuable company with a market cap exceeding $735 billion.

The Dow Jones Industrial Average provides a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq, which offers valuable insight into how the stock market is performing at any given time. Other members of the Dow Jones include American Express, Boeing, Chevron, Coca-Cola, Disney, Exxon Mobil, Goldman Sachs, IBM, Intel, JPMorgan and Chase, Microsoft, Verizon and Visa.

Apple has long been an ideal candidate for inclusion in the Dow Jones Industrial Average, although its above-$700 share price before splitting 7-for-1 last year would have inflated the price-weighted index. The stock split brought the price of Apple shares down to around the $100 mark, making it a more suitable option to be included in Dow Jones.

Top Rated Comments

HobeSoundDarryl Avatar
87 months ago
The DOW is supposed to be a representative barometer of the whole stock market based upon a relatively tiny 30-stock basket. I don't see how adding one of the top stocks and top-performing stocks contributes to that generally representative objective. This would be like having rich, old white guys elected to a government as solid representations of all Americans.

Great for AAPL and AAPL shareholders but this looks like choosing bias for the bulls over relevance (representative of the performance of all stocks). Think about it. Do you think AAPL performance remotely mirrors the performance of all stocks? I know Powerball makes a lot more money when the numbers go toward or exceed records. Maybe the DOW is playing a variation of that game? If they would adopt the top 30 best-performing stocks, the index would be likely to run to records year after year. But don't they lose the "representative" aspect at the root of what the DOW is supposed to be?
Score: 6 Votes (Like | Disagree)
IJ Reilly Avatar
87 months ago

The Dow Jones Industrial Average provides a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq, which offers valuable insight into how the stock market is performing at any given time. Other members of the Dow Jones include American Express, Boeing, Chevron, Coca-Cola, Disney, Exxon Mobil, Goldman Sachs, IBM, Intel, JPMorgan and Chase, Microsoft, Verizon and Visa.
Actually it does no such thing. The DJIA is an antique that survives from the days of adding machines. It is representative of very little and provides insight into nothing, really.

----------

Exactly, the worlds most valuable company should be included in the Dow Jones, actually it's weird that it took this long?
Because it's arbitrary. Always has been. Always will be.
Score: 5 Votes (Like | Disagree)
maflynn Avatar
87 months ago
Stalker!

Now how about the Wendy's girl? :p

You mean her :p
Score: 5 Votes (Like | Disagree)
Chupa Chupa Avatar
87 months ago
I think AT&T got dropped because of that insanely annoying girl in the wireless store commercials.

Hmm... I think she's cute, not annoying at all.

Score: 5 Votes (Like | Disagree)
Traverse Avatar
87 months ago
it's amazing really that all this revenue is from just one product, iPhone. everything else apple does is small change..
Mmmm, I wouldn't go that far. The iPhone does account for the vast amount of revenue, but according to their most recent annual filing in October 2014 the sales looked roughly like this:

iPhone $101,991
iPad $30,283
Mac $24,074
iPod $2,286
iTunes $18,063
Accessories $6,093

Since non-iPhone products account for $74,706* or roughly 40.9% of their revenue I certainly wouldn't call it a "small change." I would want more portfolio diversity instead of banking nearly 60% on the iPhone, but they can't fully control that.

*Excludes accessories since that might largely be influenced by iPhone sales.
Score: 5 Votes (Like | Disagree)
maflynn Avatar
87 months ago
The DOW is supposed to be a representative barometer of the whole stock market based upon a relatively tiny 30-stock basket
That was the initial intent, but it long ago abandoned that ideal for one that promotes growth to attract businesses. The only reason why Apple is on their is because of the growth and ability to have the Dow break records.
Score: 4 Votes (Like | Disagree)

Related Stories

youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
os x mountain lion macs 16x9 2

Apple Makes OS X Lion and Mountain Lion Free to Download

Wednesday June 30, 2021 12:19 pm PDT by
Apple recently dropped the $19.99 fee for OS X Lion and Mountain Lion, making the older Mac updates free to download, reports Macworld. Apple has kept OS X 10.7 Lion and OS X 10.8 Mountain Lion available for customers who have machines limited to the older software, but until recently, Apple was charging $19.99 to get download codes for the updates. As of last week, these updates no...
bluetti eb70 main

MacRumors Giveaway: Win a Bluetti EB70 Portable Power Station and 200W Solar Panel

Friday September 3, 2021 11:13 am PDT by
For this week's giveaway, we've teamed up with MAXOAK to offer MacRumors readers a chance to win a Bluetti portable power station and an accompanying solar panel. Bluetti makes a range of portable power station options that are useful for camping, emergencies, power outages, off-grid living, and similar situations. The Bluetti EB70 is a solid middle of the road option that offers 716Wh and...
apple privacy

Apple Publishes FAQ to Address Concerns About CSAM Detection and Messages Scanning

Monday August 9, 2021 1:50 am PDT by
Apple has published a FAQ titled "Expanded Protections for Children" which aims to allay users' privacy concerns about the new CSAM detection in iCloud Photos and communication safety for Messages features that the company announced last week. "Since we announced these features, many stakeholders including privacy organizations and child safety organizations have expressed their support of...
General Spotify Feature

Spotify Pauses Plans to Add AirPlay 2 Support to iOS App [Update: Spotify Clarifies]

Friday August 6, 2021 9:07 am PDT by
See update at bottom of article Spotify this week confirmed that its plans to add AirPlay 2 support to its iOS app have been placed on indefinite hiatus. In an online discussion forum post, a Spotify representative said the streaming music service had been working on supporting AirPlay 2, but the company has paused the efforts "for now" due to "audio driver compatibility issues." The...
iphone 13 teal with text

Apple Begins Preparation for iPhone 13 Production Ahead of Fall Launch

Monday June 28, 2021 3:29 am PDT by
We're just a few months away from when Apple is expected to reveal the 2021 iPhone, dubbed the "iPhone 13." In preparation for its launch, it has been pulling in shipments of different components needed to produce the new iPhones, according to a report from DigiTimes. In years past, Apple released its latest iPhone lineup, alongside a new Apple Watch, during a September event at Apple Park....
General Spotify Feature

Spotify Partners With Delta to Provide Free In-Flight Music and Podcasts Service

Thursday September 2, 2021 12:59 am PDT by
Spotify has announced a new partnership with Delta that will see the streaming service take over the "audio" section of Delta's in-flight seatback entertainment, making select playlists and podcasts freely available to all passengers. You are now free to roam about the cabin—and get the music and podcasts you love at 30,000 feet. Beginning today, we're taking off in a new partnership with...
iphone 12 colors 2021

iPhone 12 Colors: Deciding on The Right Color

Thursday November 5, 2020 8:35 am PST by
The iPhone 12 and iPhone 12 Pro arrived in October 2020 in a range of color options, with entirely new hues available on both devices, as well as some popular classics. The 12 and 12 Pro have different color choices, so if you have your heart set on a particular shade, you might not be able to get your preferred model in that color. iPhone 12 mini and iPhone 12 The iPhone 12 mini and iPhone...