Should I Buy Apple Shares in 2023?
Apple is without a doubt one of the most successful companies ever. In fact, at the time of writing, it is the largest company in the world by market capitalisation. The tech giant has created an almost cult-like following amongst its fans, with each new product launch attracting considerable attention around the globe.
With so much past success, investors may find themselves asking the question, ‘should I buy Apple shares?’ In this article, we will provide insight for those considering investing in Apple stock, deliver an analysis of the recent Apple share price, demonstrate how to buy shares in Apple and much more!
Table of Contents
Apple Inc. – A Brief History
Since its foundation in 1976, Apple has become the largest company in the world by market cap, breaking several records along the way.
But how did it get there? Before we look at the prospect of investing in Apple and demonstrate how to buy Apple shares, let’s take a look at some of the highlights in Apple’s illustrious history:
- 1976: Apple founded by Steve Jobs, Steve Wozniak and Ronald Wayne. Later that same year, the Apple I prototype debuted, having been hand-built by Wozniak and reportedly financed through the sale of Jobs’ VW Camper Van and Wozniak’s HP-65 calculator
- 1980: Apple goes public via an Initial Public Offering (IPO)
- 1982: Apple added to the S&P 500
- 1984: The original Macintosh is released
- 1985: Steve Jobs resigns from Apple after being forced out and subsequently founds NeXT
- 1996: After a period of decline at the hands of Microsoft, Apple acquires NeXT and brings back Jobs, who became CEO the following year and went on to gradually transform Apple into the company we know today
- 2001: Debut of the iPod
- 2007: The first iPhone is unveiled
- 2010: The first iPad is released and later that year Apple’s market capitalisation surpasses that of competitor Microsoft for the first time since 1989
- 2018: Apple becomes the first US company to reach a market cap of $1 trillion
- 2020: Apple becomes the first US company to reach a market cap of $2 trillion
Apple Financial Results
The return of Steve Jobs to Apple kicked off a period of unbridled success for the tech giant and, particularly since the iPhone was first unveiled in 2007, Apple’s profitability has soared.
When investing in Apple, or any other company, 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 2022.
|12 Months Ended 24 September 2022||12 Months Ended 25 September 2021||YoY % change|
|Net Sales||$394.33 billion||$365.82 billion||7.79%|
|Net Income||$99.80 billion||$94.68 billion||5.41%|
|Earnings per Share (EPS)||$6.15||$5.67||8.47%|
Source: Apple – Fiscal Year 2022
Analysis on Apple Stock Price
Especially over the last decade, Apple’s share price has experienced phenomenal growth, gaining more than 1,000% in the ten years ended 31 May 2023. Before we address the question of ‘should I buy Apple shares?’ let’s take a look at the recent history of the Apple share price.
After recording a gain of 86% in 2019, Apple shares began the year 2020 well but – in February, as coronavirus began to spread around the world – the Apple share price fell, dropping more than 30% in a little under six weeks.
However, this downtrend did not last long. Apple, like many other tech stocks, went on to record extraordinary success during the social restrictions which ensued. After hitting a low of $56.09 on 23 March 2020, Apple shares soared and gained around 217% by the end of 2021.
Nevertheless, as with many stocks, Apple shares struggled in 2022 amidst high inflation, rising interest rates and an uncertain economic outlook. By the end of 2022, Apple’s share price had fallen 27%.
The year 2023 has thus far been far kinder to Apple, with share price soaring 44% in the first six months, regaining the previous year’s losses in the process.
|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, as of 22 June 2023, you would have owned 10,080 shares, a position worth around $1,884,960!|
Will Apple’s strong performance this year continue? In the following section, we will examine the question of ‘should I buy Apple shares?’
Invest in Apple with Admirals
With an Invest.MT5 account from Admirals, you can buy shares of Apple as well as shares from more than 4,500 stocks and over 200 Exchange-Traded Funds (ETFs) from 15 of the world’s largest stock exchanges! Click the banner below in order to open an account today:
Should I Buy Apple Shares in 2023?
It is true that Apple shares didn't perform well in 2022, but it is important to look at this drop in the context of the wider stock market, which suffered amidst challenging economic circumstances. Besides, when analysing the past success of a stock, it is better to look at the bigger picture rather than focusing too much on individual years.
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 almost 135,000%. But what makes 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 existing 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, with relatively high profit margins to boot. In 2022, Apple’s net income was almost $100 billion, a figure which exceeds the Gross Domestic Product (GDP) of many countries.
Apple also has a history of treating its shareholders very well through a generous capital return programme. Unlike many other popular technology stocks, Apple pays a quarterly dividend, although its current yield of 0.5% doesn’t place it amongst the highest yielding stocks.
However, its share buyback programme has become increasingly lavish in recent years, with the tech giant repurchasing $90 billion worth of its shares in 2022. This most recent buyback means that, since the program began in 2013, Apple has spent around $550 billion buying back its own shares.
Share buybacks reduce the number of outstanding shares, which essentially means existing shareholders watch their stake grow without having to do anything. Furthermore, buybacks can provide a lift to share price and also signals management’s confidence in their business.
Potential Risks of Buying Apple Shares
There is certainly a lot to like about Apple stock; however, those considering investing in Apple shares 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.
In 2022, over half of Apple’s revenue was generated by iPhone sales. A slowdown in this market could, therefore, have ramifications on Apple’s earnings. Furthermore, with so much cash being returned to shareholders instead of being reinvested in the company, there is a risk that Apple’s future innovation may suffer.
How to Buy Shares of Apple
With an Invest.MT5 account from Admirals, you can buy Apple shares at competitive terms! In order to learn how to buy shares in Apple, follow these steps:
- Open an Invest.MT5 account and log into the Dashboard
- Find your account details and click ‘Invest’ to open the Admirals Platform
- Search for Apple stock and open the instrument page
- Enter the number of Apple shares you wish to purchase and click ‘Buy’ to send the order to the market!
Trade on a Risk-Free Demo Account
If you are interested in investing but don’t feel ready for the live markets, a demo trading account could be just the thing. A risk-free demo account from Admirals allows you to practice trading and investing in realistic market conditions without risking your money! Click the banner below to open your free demo account today:
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