Key Points
-
There are 1.6 billion active iPhones in circulation.
-
Apple stock is beating the market so far this year.
-
Over the past 10 years, Apple stock has gained nearly four times as much as the S&P 500.
Apple (NASDAQ: AAPL) stands as one of the most compelling success stories in stock market history. It has frequently held the title of the world’s most valuable company, and its current position as the second-largest company, trailing only behind chipmaker Nvidia, remains highly impressive.
Apple represents a prime example of an equity that might have appeared to have reached its peak a decade ago. However, a hypothetical $10,000 investment made at that time would have yielded substantial returns today.
Image source: Apple.
The Rise of the iPhone
It is hard to believe that the iPhone has only been available since 2007. Today, there are 1.6 billion active iPhones globally, with consumers continuing to purchase these smartphones at an impressive pace.
Despite broader economic inflation, Apple has reported robust growth. The market increasingly recognizes that the company’s less capital-intensive approach to artificial intelligence (AI) was a strategically sound decision. Apple stock has appreciated by nearly 16% this year, outperforming the S&P 500, which has risen by approximately 12%.
Over the past ten years, Apple’s stock has surged by more than 1,000%. When accounting for reinvested dividends, the total return reaches nearly 1,200%—a figure that is nearly four times the total return of the S&P 500.
^SPX data by YCharts.
Consequently, an investor who placed $10,000 in Apple a decade ago, reinvested their dividends, and maintained their position through market volatility would currently hold a portfolio valued at $129,000. While Apple is unlikely to replicate this magnitude of growth over the next decade given its current $4.6 trillion market capitalization, it continues to present significant value for long-term investors.