Should I Invest in Apple?
Apple is without a doubt one of the most successful companies ever. But with so much past success, investors may find themselves asking the question, ‘should I invest in Apple?’
In this article, we will provide information for those considering investing in Apple stock. We will take a look at the historical performance of Apple shares, provide an Apple stock forecast, demonstrate how to buy shares in Apple and much more!
Table of Contents
Apple Historical Share Price Performance
In its illustrious history, Apple has experienced phenomenal growth in the stock market, handsomely rewarding its shareholders along the way. In the ten years ended 31 December 2023, Apple shares gained more than 860%.
In 2018, Apple was the first US company to reach a market cap of $1 trillion; in 2020, it was the first to reach a market cap of $2 trillion; and, in 2023, it was the first company ever to hit a market value of $3 trillion.
Before we address the question of ‘should I invest in Apple?’ let’s take a look at the historical performance of the Apple share price, which can be seen in the chart below.
| A $1,000 investment in Apple at the IPO price of $22 per share would have bought you 45 shares of Apple stock. Adjusting for subsequent stock splits, you would own 10,080 shares, a position which would be worth around $2,282,112 at the time of writing. |
After a disappointing year in 2022, in which share price dropped 27%, Apple shares recovered well in 2023, closing the year with a gain of almost 50%. Despite slowing growth in iPhone sales contributing to stock market pressure at the beginning of 2024, Apple shares managed to shake off the downward momentum, rising 15% in the first eight months of the year.
Apple Financial Results
When buying shares in Apple stock, or any other, it is important to remember that you are acquiring a portion of the company. The success of your investment is dependent on the continued success of Apple’s business. Therefore, it is important to familiarise yourself with the company’s recent financial performance and their future outlook.
In the table below, we have highlighted some of the key figures from Apple’s full-year results for the fiscal year of 2023.
Source: Apple – Fiscal Year 2023
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Should I Invest in Apple?
Apple has undoubtedly been one of the most successful stocks in recent history in terms of share price growth. Since its stock market debut in 1980, Apple shares have gained more than 170,000%. But what has made Apple successful? And is Apple stock worth buying now?
On the face of it, Apple’s business model is a simple one - it produces and sells a number of consumer goods and services. However, what gives Apple a serious competitive advantage over its rivals is the high degree of brand loyalty it enjoys.
This exceptional brand loyalty has historically almost guaranteed its success in every new venture the company undertakes. It also means that Apple’s devoted customers regularly upgrade their existing products for new models, something which is helped by Apple’s talent for quickly making older products feel obsolete.
The successful ecosystem which Apple has created means that, once entered, it is very difficult for consumers to leave. iPhones, iPads, MacBooks, AirPods and Apple Watches are all designed to integrate well with one another, meaning that, once a consumer buys one Apple product, it’s likely they’ll end up buying more.
This high brand loyalty and successful ecosystem has helped turn Apple into one of the most profitable companies on the planet.
Generous Capital Return Programme
Apple has a history of treating its shareholders very well through a generous capital return programme.
Unlike many other top technology stocks, Apple pays a quarterly dividend. Although its current yield of 0.4% isn’t much to write home about, it has increased its payout every year since quarterly dividends were introduced in 2012.
Whilst its dividend payments might not be overwhelmingly attractive, its share buyback programme is one of the most substantial in the world.
Share buybacks reduce the number of outstanding shares which essentially means existing shareholders watch their stake in the company grow without having to do anything. It’s also the reason why despite Apple’s net income falling in 2023, its EPS actually rose slightly, as its share count fell by 3% during the year.
In 2023, Apple bought back $77.6 billion of its stock, down from $89.4 billion the previous year. Over the last decade, the tech giant has repurchased more than $600 billion of its own shares.
Risks of Buying Apple Shares
There is certainly a lot to like about Apple stock; however, those considering buying shares in Apple must weigh the risks as well as the potential benefits. The stock market can be unpredictable, and investments can lose value, particularly in the short term.
Despite producing a range of products and services, the lion’s share of Apple’s revenue is generated by iPhone sales, accounting for 52% of total sales in 2023. This hasn’t been too much cause for concern historically, however, iPhone sales growth has begun to cool in 2024.
Furthermore, a combination of falling consumer confidence in China and renewed competition from Chinese smartphone producer Huawei has sales come under pressure in this market.
Apple Stock Forecast
So, what do the analysts currently think about investing in Apple? Out of 34 analysts asked for an Apple stock forecast, 24 gave the stock a Buy rating, 9 said the stock was a Hold and 1 rated the stock a Sell.
Amongst these analysts, the highest 12-month price target was $300 and the lowest was $186. The average Apple stock forecast was $249.
How to Buy Shares in Apple
With an Invest.MT5 account from Admiral Markets, you can buy Apple shares with a low commission of $0.02 per share and a minimum transaction fee of $1 (see our Contract Specifications page for more details). In order to learn how to buy shares in Apple, follow these steps:
- Open an Invest.MT5 account and log into the Dashboard.
- Open the web trading platform.
- Search for Apple stock and click the symbol to open a price chart.
- Enter the number of Apple shares you wish to purchase and click ‘Buy’.
Invest in Apple with Admiral Markets
With an Invest.MT5 account from Admiral Markets, you can buy shares of Apple as well as shares from more than 4,500 stocks and over 200 Exchange-Traded Funds (ETFs) from some of the of the world’s largest stock exchanges! Click the banner below in order to open an account today:
FAQs on Investing in Apple
What was Apple IPO price?
Apple went public in 1980 at an IPO price of $22 per share ($0.10 per share if subsequent stock splits are accounted for).
Does Apple pay dividends?
Yes, Apple currently pays a quarterly dividend to shareholders.
How much dividends does Apple pay?
In 2023, Apple paid a total dividend per share of $0.93.
How many times has Apple stock split?
Apple has split its stock on five occasions since the company went public. The most recent of these stock splits was in August 2020, when the stock was split on a 7-1 basis.
How many shares of Apple does Warren Buffett own?
At the time of writing, Warren Buffett’s Berkshire Hathaway owns approximately 400 million shares in Apple, having sold half of its Apple holding in the first two quarters of 2024.
How many shares Does Apple have?
As of 29 June 2024, Apple has 15,287,521,000 shares outstanding.
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