Apple is one of the most innovative and technologically advanced companies. Its market capitalization exceeds $1 trillion, alongside companies like Microsoft and Alphabet.
In the article, let’s take a look at what makes Apple stock so interesting and is it one of the best investments you can make today? Why is Apple stock still great? Let’s get started.
Steve Jobs is an absolute genius, as is Tim Cook. They both made Apple one of the most likable gadgets without any gender or age difference. From kids to adults, everyone has their favorite apps to bank on. If any of you living in this part of the world or anywhere else in the world are not familiar with the Apple company or the products it makes, it will surprise me.
Apple is one of the most powerful brands with high prices for smartphones, I mean gadgets.
The Apple Ecosystem – Yes, that’s what I like about investing in Apple stock, not the numbers, not the first, second, third or fourth quarter and iPhone sales numbers. Don’t get me wrong, the numbers are big, but here’s the reality: brand loyalty across the industry is governed by Apple. My 5 year old iPad Mini still works well and I can play high end games with it, answer calls, listen to music and its resale value is amazing.
Remember that Apple has one of the most loyal fans in the technology field compared to other product manufacturing companies like Samsung, Google, LG, etc.
What really makes Apple stock great? Why are people crazy about Apple products? What are Apple’s revenues? Is it just iPhone sales? No, that’s not the case. Read on to find out more.
People truly love and respect Apple products
As an Apple user, I actually have an iPhone, an iPad, a MacBook, AirPods, an Apple Watch (yes, almost everything except HomePod :P) and I’m an integral part of Apple’s ecosystem with 200 GB of cloud storage and Apple Music.
Now what makes all this great. Samsung has its cloud network, Google too.
So what really makes Apple fans loyal and loyal to the ecosystem?
Yeah, that’s true. They all have their own ecosystems (walls), but nothing works seamlessly like Apple does across all devices.
For example, I don’t need to answer my call on my cell phone when I’m working on Mac, it really works. I usually answer phone calls through my Mac during the morning.
Also photostream, I don’t need to search for my child’s photos on my cell phone. I set the photo stream option and I can see all the photos on my Mac or iPad for example.
I can bet that neither Google nor Samsung have the code that can do all of this and as well as what Apple does.
Now forget it, have you tried the Apple Car Play feature, it’s just excellent.
Sorry for getting off topic. I just wanted to point out that Apple is very hard to beat in technology and brand loyalty is very high for the reasons mentioned above.
People love Apple products and that’s a fact. They are willing to pay premium price for its products because they know it works even after 4-5 years.
Apple’s major operating system software update includes iPhones from the last 4-5 years.
Fun fact: my iPad mini 4 that I bought in 2015 received the latest iPad OS update and runs as smooth as butter. I can never imagine this from Samsung nor forget Google doing this.
Do you really think the only tech stock Warren Buffet owns is Apple? He’s everyone’s stock market and investing guru, right? Could he be wrong? I don’t think so.
Apple Stocks in 2020
Very good, very good now. Enough praise for Apple. I won’t get an iPhone 11 Pro by doing this 😀
Tim Cook won’t call my cell to wish me on my birthday either 😛
Let’s take a quick look at Apple stock market chart below over the past 15 years.
|
1 day |
1 week |
1 month |
3 months |
YTD |
1 year |
3 years |
5 years |
10 years |
15 years |
|
|
AAPL |
2.66 |
4.05 |
5.64 |
5:46 p.m. |
51.19 |
11:55 a.m. |
28.08 |
19.79 |
24.95 |
35.14 |
Now these are the kind of returns you can expect from a high-end blue company listed on NASDAQ with a market cap of $1.07 trillion (at the time of writing, October 2019).
Can Apple stock really continue to deliver these kinds of returns for years to come?
I firmly believe that yes Apple can, no no I’m not crazy here to just put my money here. I strongly believe this for the reasons below:
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Analysts, various tech industry players, and journalists generally get Apple wrong with various sorts of reports. You can usually read in the daily news about things like slow iPhone sales, iPhone X costs $1,000, iPhone 11 Pro Max represents more than $1,500. But did Apple customers hesitate to buy them? Not really. The numbers are generally very good.
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Alright, now the iPhone XR – which is Apple’s budget phone of 2018 – was the best-selling premium smartphone in terms of units sold. Now the iPhone XR was priced lower, so did Apple go crazy making it? This is how you feel. Never! Tim Cook is always right. They are making LCD screens in 2018 and it is selling like hotcakes. For what? Are people crazy? No man! Apple’s LCD screen is incredible technology. Not the cheap junk you get from others. Plus, the iPhone XR’s battery is the best in the industry.
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Now Apple sold a ton of iPhone XRs, they sold a lot more AirPods, a percentage of those users got iCloud, iMusic made App Store purchases. Also, don’t forget App Store revenue. This is all revenue for Apple, right?
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However, as Bill Gates said in one of his interviews: Apple and its operating system cannot be replaced on the market, it is still number 1, there was room for a second competitor and Android took it. It’s Microsoft’s loss here.
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Is Android still as good as iOS – I don’t think so. Android has improved over time, yes, but not as good and optimized as iOS.
The future of Apple and the impact on the stock
iPhone 11 sales are really good. The redefined cameras and the A13 Bionic are all excellent. It sells really well.
Additionally, Apple launched Arcade Games, promoting TV+ aggressively with companies like Morning Show and Jen Anniston.
Don’t forget the new 13-inch MacBook Pro, the iWatch Series 5, as well as the latest iPads.
I strongly believe that Apple may not be the best innovative technology company, but that doesn’t mean it’s also second!
Do I like the 11 Pro cameras on the back? Hell no, never! It’s so bad, it’s common.
But look, here’s the thing. Did we like the design of the AirPod at first. People didn’t care. Common now. Don’t lie to me.
Do you remember the watch? People also made fun of it for its design and actually called it a failure. Is this so? No!
Now that’s Apple for you 🙂
In a nutshell, I am confident that Apple is here to stay and will remain strong both in terms of revenue generation and profit.
Apple Stock Dividend History
Apple is one of blue chip stocks paying the highest dividends. We all know it.
In 2019 alone, Apple Stock distributed $2.27 in dividends to shareholders. In addition to the stock’s growth trajectory, dividends are a good way to increase your income.
Additionally, Apple makes billions of dollars in revenue every year. Dividend payments are therefore only expected to increase in the future, as has been the case in the past.
Below I provide their dividend history data since 2017
| Declared | Save | Payable | Amount |
|---|---|---|---|
| July 30, 2019 | August 12, 2019 | August 15, 2019 | $0.77 |
| April 30, 2019 | May 13, 2019 | May 16, 2019 | $0.77 |
| January 29, 2019 | February 11, 2019 | February 14, 2019 | $0.73 |
| November 1, 2018 | November 12, 2018 | November 15, 2018 | $0.73 |
| July 31, 2018 | August 13, 2018 | August 16, 2018 | $0.73 |
| May 1, 2018 | May 14, 2018 | May 17, 2018 | $0.73 |
| February 1, 2018 | February 12, 2018 | February 15, 2018 | $0.63 |
| November 2, 2017 | November 13, 2017 | November 16, 2017 | $0.63 |
| August 1, 2017 | August 14, 2017 | August 17, 2017 | $0.63 |
| May 2, 2017 | May 15, 2017 | May 18, 2017 | $0.63 |
| January 31, 2017 | February 13, 2017 | February 16, 2017 | $0.57 |
How Apple Compares to Other Blue-chip Stocks
Alright, we’ve talked a lot about Apple and the stock’s good outlook.
Let’s just compare apples to oranges, shall we? 🙂
Again, the only stock on NASDAQ right now in 2019, with a market cap comparable to Apple in Microsoft.
Amazon, Google, and Facebook stocks are all below the trillion-dollar market cap.
Now, Microsoft shares are doing well, especially if you see 2019 stock returns from January or even from the beginning of 2018.
I really like Microsoft stock, and with all the innovations it offers, it’s a really great place to invest your hard-earned money.
I think Apple and Microsoft are two great tech companies to invest your money in.
Conclusion
Well, Apple stock is one of the rare gems of the US stock market.
As an American or Canadian, we should really be proud of these high-tech product companies with so much innovation happening.
Plus, Apple gives it back to the environment, which is great with so much recyclable material used in its products.
From an investment perspective, Apple Stock has been great and has created many millionaires, even billionaires, over the past decade. As Mr. Mobile would say, stay invested as long as you can, my friends, and the company nor its products will disappoint. Additionally, annual dividends will only increase.
Apple’s revenue continues to grow and will do so with services surpassing iPhone sales figures.
Well, please let me know your thoughts and comments below. Please share this article if you like it. Thanks for reading and see you soon.
