Apple is one of the most innovative and tech-savvy companies out there. Its market cap is over a trillion dollars along with the likes of Microsoft and Alphabet.
Steve Jobs is an absolute Genius and so is Tim Cook. They both have scaled Apple to one of the most likeable gadgets without any gender gap or age differences. Right from kids to adults, everybody has their favourite apps to bank on. If anyone of you living in this part of the world or anywhere else across the globe aren’t aware of the company Apple or the products they make, it’ll be surprising to me.
Apple’s one of the strongest brands out there with premium prices for smartphones, I mean gadgets.
Apple’s Ecosystem – Yeah that’s what I like when investing in Apple shares, not the numbers, not the Q1, Q2, Q3 or Q4 and iPhone sale numbers. Don’t get me wrong here, numbers are important, but here’s the real thing – brand loyalty across the industry is ruled by Apple. My 5-year-old iPad Mini still works fine and I can play high-end games with it, pick calls, listen to music and it has an amazing resale value.
Not to forget Apple has one of the most loyal fans across the tech space when compared to other product manufacturing companies in the likes of Samsung, Google, LG etc
What really set’s the Apple stock great? Why are people crazy about Apple products? What is Apple’s revenue all about? Is it just the iPhone sales? No, it’s not. Read on to know more.
People Genuinely Love & Respect Apple Products
Being an Apple user, in-fact I have an iPhone, iPad, MacBook, AirPods, Apple Watch (yeah almost everything out there except HomePod :P) and am very much part of Apple’s ecosystem with 200 GB cloud storage and Apple Music.
Now, what makes all of this great. Samsung has their cloud network, Google has too.
Then what really makes Apple fans loyal and stick to the ecosystem?
Yeah, that’s right. They all do have their own ecosystems (walls) but nothing works seamlessly as Apple does across devices.
For example, I don’t need to pick my call on the cellphone while working on Mac, it really works. I usually answer the phone call through my Mac during morning hours.
Also photostream, I don’t have to search for my Kid’s photos on my cellphone. I have set the photo stream option and can see all the photos on my Mac or iPad for instance.
I can bet neither Google nor Samsung has the code which can do this all and as good as what Apple does.
Now Forget these, have you tried the Apple car play feature, it’s just excellent.
Sorry to deviate you away from the topic. I just wanted to make a point that, Apple is very hard to beat in the tech space and brand loyalty is very high because of the above-said reasons.
People love Apple products and it’s a fact. They are ready to pay the premium for its products because they know it works even after 4-5 years.
Apple’s major OS software update includes iPhones from the past 4-5 years.
Fun fact – my iPad mini 4 which I bought in 2015 got the latest iPad OS update and runs as smooth as butter. I can’t ever imagine this from Samsung or forget Google doing this.
Do you really think that the only tech stock that Warren Buffet owns is Apple? He’s everyone’s stock market guru and investments, right? Can he be wrong? I don’t think so.
Apple Stock In 2020
Alright, alright now. Enough of praising Apple. I won’t get an iPhone 11 Pro from doing this 😀
Nor will Tim Cook call my cell and wish me on my birthday 😛
Let’s quickly look at the Apple stock market chart below for the past 15 years.
Now those are the kind of returns you can expect from a premium A list blue company which is listed on NASDAQ having a market cap of 1.07 Trillion dollars (as of writing, October 2019).
Can Apple Stock Really Continue Giving These Kinds Of Returns In The Years Going Forward?
I strongly believe yes Apple can, no no I am not nuts here to just bank my buck here. I strongly believe so for the below reasons:
Analysts and the so and so of the tech space and reporters are usually wrong about Apple with sorts of reports. You may usually read on the daily news reports such as slow iPhone sales, iPhone X is $1000, iPhone 11 Pro Max is a $1500+ dollars. But, have Apple customers shied away from buying ones? Not really. The numbers are usually very good.
Alright, now then, iPhone XR – which is Apple’s budget phone from 2018 was the #1 selling premium smartphone in terms of units sold. Now the iPhone XR was priced less, so did Apple go nuts to make it? You feel so. Never! Tim Cook’s always right. They make LCD screens in 2018 and it sells like a hot cake. Why? Are people crazy? No man! Apple’s LCD is amazing tech. Not the cheap garbage ones you get from others out there. Also, iPhone XR’s battery is the best in the industry.
Now then, Apple sold a ton of iPhone XR’s, they sold a lot more AirPods, percentage of those users got iCloud, iMusic made purchases from the App Store. Don’t also forget the App Store revenue. It’s all revenue for Apple, isn’t it?
Now then, as Bill Gates said in one of his interviews – Apple and its OS cannot be replaced in the market, it is always #1, there was space for a second competitor and Android took it. That’s Microsoft’s loss here.
Still is Android as good as iOS – I don’t think so. Android’s got better over time, yes but not as good and optimized as iOS.
Future Of Apple and the Impact on the stock
The iPhone 11 sales are really good. The redefined cameras and A13 Bionic are all great. It’s selling really well.
Also, Apple has launched Arcade gaming, promoting TV+ aggressively with the likes of Morning Show and Jen Anniston.
Don’t forget the new 13” MacBook Pro and the iWatch Series 5, and the latest iPad’s.
I strongly believe that Apple may not be the best innovative tech company out there, but it doesn’t mean they are second too!
Do I like the 11 Pro Cameras at the back? Hell no, never! It’s so bad, common on.
But, look here’s the thing. Did we like the AirPod’s design at first. People mocked at it. Common on now. Don’t lie to me.
Remember the watch? People mocked it too for the design and in fact, called it a flop. Has it been so? No!
Now that’s Apple for you 🙂
In a nutshell, I strongly feel Apple is here to stay and will stay strong both in terms of revenue-generating and profit machine.
Apple Stock’s Dividend History
Apple is one of the highest dividend-paying blue-chip stocks. We all know that.
Also, Apple makes billions of dollars in revenue every year. So dividend payments should only increase going forward as it’s been in the past.
Below I am providing the data of their dividend history since 2017
|July 30, 2019||August 12, 2019||August 15, 2019||$.77|
|Apr 30, 2019||May 13, 2019||May 16, 2019||$.77|
|Jan 29, 2019||Feb 11, 2019||Feb 14, 2019||$.73|
|Nov 1, 2018||Nov 12, 2018||Nov 15, 2018||$.73|
|Jul 31, 2018||Aug 13, 2018||Aug 16, 2018||$.73|
|May 1, 2018||May 14, 2018||May 17, 2018||$.73|
|Feb 1, 2018||Feb 12, 2018||Feb 15, 2018||$.63|
|Nov 2, 2017||Nov 13, 2017||Nov 16, 2017||$.63|
|Aug 1, 2017||Aug 14, 2017||Aug 17, 2017||$.63|
|May 2, 2017||May 15, 2017||May 18, 2017||$.63|
|Jan 31, 2017||Feb 13, 2017||Feb 16, 2017||$.57|
Apple vs. Other Blue Chip Stocks Comparison
Alright then, we spoke a lot about Apple and how good the stock’s prospects are.
Let us just compare Apples to Oranges, shall we? 🙂
Again, the only stock in NASDAQ right now in 2019, with the likes of Apple’s market cap in Microsoft.
Amazon, Google, Facebook stocks are all below the Trillion dollar market cap valuation.
Now then, Microsoft stocks doing great especially if you see the 2019 stock returns since Jan or even from the start of 2018.
I genuinely love the Microsoft stock and with all innovations they do, it’s really great to invest your hard-earned money in.
I think Apple and Microsoft are both amazing tech companies to invest your money in.
Well then, Apple stock is one of the few gems in the US stock market.
As an American or a Canadian, we need to really be proud of these high-tech product companies with so much innovation going on.
Also, Apple gives it back to the environment is great with so many recyclables being used in its products.
From an investment point of view, Apple Stock’s been great and has created so many millionaires and even billionaires over the past decade. As Mr. Mobile would say, Just stay Invested for as long you can my friends, and the company nor its products will disappoint you. Also, annual dividends are only going to rise.
Apple’s revenues keep growing and will do so with services outpacing the iPhone sales numbers.
Well, please let me know your thoughts and comments below. Please share this article if you like it. Thanks for reading and cya soon.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.