There was a time when most people across the world shied away from the iPhone, deeming it too expensive or too complex most of the time. But, how times have changed! Over time, they have become the most popular handsets on earth, enticing the fantasy of smartphone aficionados on a never-ever-seen-before scale. However, some saw the future back in 2007, when the first iPhone came out.
They may not have bought the phone, but they bought Apple stock (shares in the company). Over the decade these mesmerizing phones have existed, investors have banked and profited on the growing popularity and potential of the company and pushed the initial value of shared by a whopping 744%.
So if you invested $1000 in Apple back in 2007, you are in for $8440 today! Fickle good, isn’t it? This doesn’t even include reinvested dividends, which would increase the ROI even further.Even if you invested an amount equal to the cost of the 1st generation iPhone i.e. $600, you would be in for $5065. You could easily buy five iPhone 8s with that money!
Let’s delve into the math a little deeper and find out how you could make if you were on of the big players. Let’s say you could invest the amount equal to the price of a condo in 2007, i.e., $135,000.
- The fund value would alone be $1.1 Million
- IF we take the dividend payments that Apple started after 2012, we get another$200,000
Total gains equaling $1.3 Million.That’s a return of 833%
No doubt, Apple is the most reliable brand on the planet.
The value to shareholders is magical. Even the S&P 500 could gain only 62% in the same time-span!
Shareholders and investors don't usually invest to hedge the cost of the product. However, we can see that those who locked in early on, stand to gain the most. The numbers are just an estimate showing the exponential growth Apple has recorded since iPhone was launched.
What are investors hoping for today?
The basic mindset of investors is pretty simple: the higher the stock value, the happier they are.Increasing stock evaluations mean long-term capital gains and regular dividend payments. Therefore, any innovation, market move or product launch that propels Apple stock will set a buying boom across investors.
Last year's decline in iPhone sales posed worries about Apple losing its charm. However, Apple is confident about its diversified range of services like Apple Music, which have failed to achieve exponential growth in the past few years.
While Apple moves towards the iPhone 8, investors will be keeping a close eye on the sales performance. What do you think will happen? Will the new device create a market boom like the good old times or we will find investors selling stock to maintain profitability.