A new Apple product is upon us - the iPhone 6.
iMania, iCrowds, iLineups and iTents are rampant at Apple retail outlets across the world. This scenario doesn't seem to be going away. Hipsters, artists, students, corporates and professionals alike get wrapped up in the pandemonium that is the new product launch from Tim Cook & Co.
But what if instead of being in the consumer (working) class you joined the investor class and invested in Apple at every major product release since just the iPhone?
How much money would you have? Read on and please don't throw your expensive phone at the wall...
iMania, iCrowds, iLineups and iTents are rampant at Apple retail outlets across the world. This scenario doesn't seem to be going away. Hipsters, artists, students, corporates and professionals alike get wrapped up in the pandemonium that is the new product launch from Tim Cook & Co.
But what if instead of being in the consumer (working) class you joined the investor class and invested in Apple at every major product release since just the iPhone?
How much money would you have? Read on and please don't throw your expensive phone at the wall...
Let’s face it. Apple is rich.
Their products are built solid and work better than a solar powered calculator. Unless you’ve been living in a hut on the shores of Lake Titicaca you know most of their products have been groundbreaking. Yes, iPod revolutionized music. Then the iPhone made touching plastic Gorilla Glass very cool to do on public transit. Yes, the super big iPhone, I mean iPad, wasn’t necessary but became a massive indulgence buy.
While the majority of working class folk that do the bulk volume of consumer purchases were snapping up these products faster than Wile E. Coyote buys Acme Anvils, Apple was quietly making a KILLING.
How much?
When the markets were crashing, burning and sliding into market hell back in 2008-09, apple was reporting an annualized profit of $8 Billion dollars. That’s billion with nine zeros.
Profits are what’s left after all the employees, managers, R&D, products, shipping, cafeteria workers and fancy iToilet trained cleaners are paid.
Stay with me for a brief moment. The profits are broken down as follows:
2009 - $8.2 Billion
2010 - $14 Billion
2011 - $25.9 Billion
2012 - $41.7 Billion (a good year I guess)
2013 - $37 Billion
In 2013 investors were pissed. Apple only made $37 Billion. I mean come on. How are they supposed to send their kids to snobby colleges?
Seriously though, Apple has more cash than
· The US Government
· The United Kingdom
· The combined net worth of all NFL teams
· Some of the top European banks, combined!
So here’s the thing. Let's approach this knowledge with a different way of thinking.
What if you had invested the money you would’ve spent on Apple’s major product releases of the iPhone and iPad in Apple shares instead of the prodcuts.
The products are depreciating assets, not question. Once you purchase them, they instantly lose value if you were trying to sell them after a period of time. Unless of course you bought in week 1 and other iFollowers couldn’t get their hands on them.
Their products are built solid and work better than a solar powered calculator. Unless you’ve been living in a hut on the shores of Lake Titicaca you know most of their products have been groundbreaking. Yes, iPod revolutionized music. Then the iPhone made touching plastic Gorilla Glass very cool to do on public transit. Yes, the super big iPhone, I mean iPad, wasn’t necessary but became a massive indulgence buy.
While the majority of working class folk that do the bulk volume of consumer purchases were snapping up these products faster than Wile E. Coyote buys Acme Anvils, Apple was quietly making a KILLING.
How much?
When the markets were crashing, burning and sliding into market hell back in 2008-09, apple was reporting an annualized profit of $8 Billion dollars. That’s billion with nine zeros.
Profits are what’s left after all the employees, managers, R&D, products, shipping, cafeteria workers and fancy iToilet trained cleaners are paid.
Stay with me for a brief moment. The profits are broken down as follows:
2009 - $8.2 Billion
2010 - $14 Billion
2011 - $25.9 Billion
2012 - $41.7 Billion (a good year I guess)
2013 - $37 Billion
In 2013 investors were pissed. Apple only made $37 Billion. I mean come on. How are they supposed to send their kids to snobby colleges?
Seriously though, Apple has more cash than
· The US Government
· The United Kingdom
· The combined net worth of all NFL teams
· Some of the top European banks, combined!
So here’s the thing. Let's approach this knowledge with a different way of thinking.
What if you had invested the money you would’ve spent on Apple’s major product releases of the iPhone and iPad in Apple shares instead of the prodcuts.
The products are depreciating assets, not question. Once you purchase them, they instantly lose value if you were trying to sell them after a period of time. Unless of course you bought in week 1 and other iFollowers couldn’t get their hands on them.
Instead of dropping a total of $2,854 on Apple circuitry to impress your friends and cause your eyes to blink a lot less, you could've bought shares of AAPL.
So here's the skinny. You'd have 69 shares of Apple stock if you bought on each of the days of a major product release (iPhone and iPad).
| Date | Product | Initial Product Price | AAPL Share Price | # of Shares You Could’ve Bought |
|---|---|---|---|---|
| July 11 2008 | iPhone 3G | $199 | $24.65 | 8 |
| June 19 2009 | iPhone 3GS | $199 | $18.95 | 11 |
| Apr 3 2010 | iPad 1 | $629 | $32.40 | 19 |
| June 24 2010 | iPhone 4 | $199 | $36.55 | 5 |
| March 11 2011 | iPad 2 | $499 | $47.82 | 10 |
| Oct 14 2011 | iPhone 4S | $199 | $57.34 | 3 |
| Sept 21 2012 | iPhone 5 | $199 | $95.53 | 2 |
| Nov 2 2012 | iPad Mini | $329 | $78.71 | 4 |
| Sept 20 2013 | iPhone 5S | $199 | $65.30 | 3 |
| Sept 19 2014 | iPhone 6 | $199 | $100.96 | 2 |
(Note that the current share price is as of Oct 22/14)
By the way, AAPL currently pays you 47 cents for every share you own, per year. How much does your iPhone pay YOU? Ok, it is a cool toy, even for those of us that prefer our Androids. So how much money would we have if we invested in AAPL including dividend pay outs?
By the way, AAPL currently pays you 47 cents for every share you own, per year. How much does your iPhone pay YOU? Ok, it is a cool toy, even for those of us that prefer our Androids. So how much money would we have if we invested in AAPL including dividend pay outs?
So on one hand, you'd be $4,420 richer not having purchased a phone and your money would have grown by multiples.
On the other hand, you wouldn't have played Angry Birds or Mine Craft; or tried to uninstall the latest version of iOS 8, or 7 or iMaps.
On the other hand, you wouldn't have played Angry Birds or Mine Craft; or tried to uninstall the latest version of iOS 8, or 7 or iMaps.
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