INFOGRAPHIC: The Better Investment: Apple Product or AAPL Stock?
So you’re now in possession of the latest Apple product and you think to yourself – what a great investment! You’ve just spent a few hundred dollars on a product that will last for years. So now we ask: what if you bought AAPL (NASDAQ:AAPL) stock instead of this Apple product? You may shrug your shoulders as a sign of indifference to that thought, but get ready to fall off your seat as we answer this question for you. Just take a look at the infographic on the left.
Consider this: there is a high possibility that you are the owner of an Apple product or know someone who owns an iPhone, iPad, iPod, or a Macbook. Over the years, Apple has taken the world by storm with each new product, which typically sells out on the day of its release. Customers rush to stores, in fear of being left behind if they don’t get their hands on the new product right away. Apple’s latest iPhone 4S sold out on the first day, and customers now have to wait weeks for orders to be shipped to stores for pickup.
You spent $399 on your 5GB iPod on October 23, 2001, the day of its release. Right now that iPod still functions fine, but it probably rests in the back of a drawer stuffed under random gadgets and likely labelled worthless as you listen to your mp3’s using the latest, feature-filled iPod. So let’s say you had purchased AAPL stock on that day for $399, today you’d have a portfolio worth $11,914. Shocking, right? Read on. If you spent $1,599 on the iBook G3 on July 21, 1999, you likely wouldn’t have that computer today, but if you bought AAPL stock for that amount, today you’d have AAPL stock valued at $32,031. And just in case you’re not yet banging your head against the wall asking ‘why? why? why?’, let us add that $5,700 spent on a Powerbook G3 250 on November 10, 1997 would now be worth $330,563 if you purchased stock instead.
You may question, how is this possible?
Just look at the infographic on the left and note the Apple product launches and their effect on the AAPL stock. Apple went public in 1980 and its shares rose from $22 to $29 by closing time. Flash forward to 1999, and those stocks rose to $54.06 after the iBook was released. When Steve Jobs became the CEO of Apple we saw stock prices climb to $104. The AAPL stock dropped drastically in 2000 after the Cube was released, but continued to climb back up gradually by 2003 as the iPod, iTunes, and Intel Mac were released. In 2007, the iPhone was introduced and stocks were worth $122.04. A year later, the iPhone 3G was released, causing stocks to rise to $172.58.
Virtually, every product announcement caused the prices to climb. January 2010 – iPad was announced: up to $207.88; June 2010 – iPhone 4 announced: up to $250.94; March 2011 – iPad 2 announced: up to $351.99. AAPL stocks were also affected by Jobs. When he resigned in August 2011, stocks went up to $376.18 and when he passed away on October 5, 2011, they climbed higher to $378.25. Most recently, AAPL stocks went up to $422.00 on October 14th when the iPhone 4S was released.
What does this tell us?
Almost every time Apple announces or releases a new product, AAPL stock climbs. As much as you yearn to have that new Apple product in your possession, next time you may think twice before making another purchase. Instead of leaving a few hundred dollars in the Apple store, consider investing in AAPL stock. That way, in a few years you’ll be able to buy several Apple products, not to mention that these Apple products will be further enhanced and modernized to simplify and diversify your life even more. You decide what the better investment is, we did our part in laying it out for you in black and white.
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