What If You Invested Apple Stock Instead Buying First iPhone?
Technology is what we are addicted to in modern times. So, why not think out of the box to make it profitable, just like buying the company’s stock instead of the product? That way you can earn money whenever the company earns more from the others instead of you spending haphazardly and giving it to the company. Wouldn’t that be smart enough? Let’s see the power of saving and investing and where it would take you if you invested in Apple company shares before buying its product. Let us know about “What If You Invested Apple Stock Instead Buying First iPhone?”
If a company has a bright future and can take the brand to worldwide popularity then investing a bit in the stock is a wise decision. As a consumer, you will be supporting the business as well as profiting from its success. The first generation iPhone marked a huge success when it was released back in June 2007.
Cost Of iPhone Vs. Price Of Apple Stock In 2007
The multi-touch capable smartphone launched by Steve Jobs in June 2007, caught thousands of eyes which made a historic moment for the company.
The cost of the first iPhone with 4GB and 8GB storage space was $499 and $599, respectively.
On the other hand, the cost per share of Apple on June 29, 2007, was $3.75. This could add up to 133 to 160 shares of Apple stock for the price of the original iPhone at that time.
Thus you would be having around $5,700 which is almost a 1000 percent profit.
Apple stock has compounded at 18% per year since its IPO price from the year 1980.
Value Of Apple Stock In 2021
Apple crossed the market capitalization of $2 trillion in 2020 and made it to the top as the world’s most valuable company.
As per the calculation of $499 investment (at 133 shares) in Apple stock from 2007 would be worth $16,430.82 in June 2021.
The base model of MacBook back in May 2006 cost $1,099 while investing in the Apple stock would have made it worth $22,500 right now. The percent of profit you could have made is just insane.
The Apple stock price drastically grew from $18.90 in July 2007 to $317.70 in January 2020 which is a 16.8-fold growth for Apple investors.
This shows that the stocks could pay off more handsomely with the jump in its value over the years instead of the original iPhone any day.
Thus the investors of the Apple stock could now afford 20 of the latest iPhones starting at $999.
The total revenue generated by Apple was $274.52 billion in fiscal 2020 where the iPhone only accounted for 50.2% of total revenues. The other services and products contributed to the remaining cumulative revenue.
Other Products Of Apple
The iPhone is the primary runner for Apple making up over 50% of its business.
In addition, the Apple Watch and AirPod have gained significant acclaim nowadays. Because of the growing demand for these devices, there is notable domination of Apple in the market.
The iPad, MacBook, and HomePod are other Apple devices using the software applications like iOS, macOS, watchOS, and tvOS operating systems.
The subscription-based services include Apple Card, Apple Arcade, Apple News+, the new Apple TV app, and Apple TV channels.
How Much You’d Have Now If Invested In Apple 10 Years Ago?
If you had invested in Apple stocks a decade ago, you’re likely feeling really good about that decision today.
- According to the calculations, an investment of $1000 made in June 2011 would be worth $11,628.19 on June 23, 2021. This can be said about a 1,062.82% gain over 10 years.
- As said, it’s never too late and so it is still a good time to start investing in Apple now.
Buy Apple Products Or Invest In Its Shares?
- The money invested in the shares would grow manifold instead of spending it on the products, only for them to be outdated just in a while.
- The market capital of Apple is bigger than the combined market cap of all BSE 500 companies and twice as big as that of the 30-share Sensex.
The iPhone is the flagship device that primarily runs Apple’s business. However, the other Services and licensing from cloud services, App store, Apple Music, Apple Care, and Apple Pay include revenues which now became the cash cow.
Conclusion
Now we have learnt “What If You Invested Apple Stock Instead Buying First iPhone?’, To conclude it is true that investing will always be a better decision financially rather than spending. The math behind the comparisons above can set an example of the same. Thinking from a total financial perspective, the devices like iPhones and other tools of modern technology depreciate over time, meanwhile, the investments in stocks or houses tend to appreciate which can be put together as a combination of research, patience, and a little bit of risk. As for Apple, this risk would have turned into a fruitful result now.
