Apple’s products – iPhone, iPоd, iPad, MacBook, Apple Watch, AirPods – show the company’s status. Apple’s fans are even ready to take loans and stand in long lines to buy their favorite gadgets. Apple’s share in the global smartphone market is 23.4%, one of the many records set by the tech firm. In August 2018, the tech behemoth became the first company whose market capitalization reached more than $1 trillion. In August 2020, its market capitalization soared to $2 trillion. Giants such as Microsoft, Amazon, Facebook, and Tesla, are striving to achieve the same results. Meanwhile, Apple is already on its way to a $2.5 trillion market capitalization. The company’s success attracts investors. That is why Apple is included in the main stock indices.

Apple stock

Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company held its initial public offering (IPO) on December 12, 1980. Apple stock is traded on NASDAQ under the ticker AAPL, ISIN code: US0378331005.

When the firm went public, it priced its shares at $22 per unit. Apple shares worth $4.6 million were sold out almost instantly and brought more capital than any other IPO since Ford Motor Company went public in 1956.

Since the first IPO, Apple stock has split five times, which allowed the company to remain accessible for individual investors. The latest stock split on a 4-for-1 basis took place in 2020. As a result, the stock price fell to $127,58 from $499,23.

Apple stock has delivered total returns, assuming dividends are reinvested, of nearly 7,000% in the past 15 years, the fourth-best performer in the S&P 500 index. Apple stock has increased by about 460% in the past 5 years. The tech giant is a constituent of the S&P 500, Dow Jones Industrial Average, NASDAQ 100, and over 200 other stock indices.

Apple today

For the quarter, Apple posted revenue of $83.4 billion, which is 29% more than in the previous year. The company's earnings per share were $1.24, up from $0.73 recorded in the same quarter of 2020. At the same time, earnings were lower than expected and Apple stock was down 1.8% due to supply chain disruptions that resulted in the loss of $6 billion.

Other Q4 results:

  1. iPhone revenue soared by 47% year-over-year to $38.9 billion, up by 46.6% of the company's total revenue.
  2. iPad revenue increased by 21% to $8.3 billion.
  3. Mac revenue rose by 2% to $9.2 billion.
  4. Services revenue surged by 26%
  5. Other products revenue added 12%.

How to earn from investing in Apple

There are several ways to make a profit from Apple stock. The easiest one is available for every InstaForex client.

All you need to do is take the following steps:

  1. Read the terms of CFD trading on Apple stock with InstaForex.
  2. Open a trading account.
  3. Select and install a trading platform.
  4. Use technical analysis tools to determine entry points.
  5. Monitor the market trend and open positions.

Prospects and risks of investing in Apple

For over 10 years, the company has been building a unique ecosystem for billions of users around the world thanks to various lines of products and services.

The tech giant is planning to expand production:

  1. Apple plans to release new versions of the Mac, iPad, Apple Watch, and AirPods annually. The new Macs will run on Apple's own ARM-based processors.
  2. Apple is working on augmented reality (AR) technologies: the AR headset is expected to be launched in 2022 and modified AR glasses in 2023.
  3. Apple is developing a self-driving electric vehicle and is in talks with several automakers to manufacture the car. Analysts say that the vehicle will be presented between 2024 and 2027 and assume it will be equipped with Apple's full suite of AR software and services.
  4. Morgan Stanley considers Apple to be the best investment in the 5G wireless network.
  5. The company scores gains even amid the pandemic. The sales of Mac and iPad are rising due to lockdowns and homeschooling.

Nevertheless, there are factors that could have a negative impact on the performance of the company. Apple is dependent on China for both product sales and components manufacturing. This year’s supply chain issues have already resulted in a loss of 6 billion in profits. Above all else, the firm is constantly under antitrust scrutiny. For that reason, investors should always monitor whether there are legal actions against the tech giant.

Conclusion

Despite slowing growth in the key indicators, Apple remains at the top of the list of companies by market capitalization and continues to set new revenue records. Clearly, Apple's core business has growth potential. Competition in the segment is strong but the development of AR technologies and 5G opens up new horizons for the company. Ambitious goals, backed by investors’ confidence, give hope that APPL is a good mid-term and long-term investment instrument. Stay tuned, remember to diversify your portfolio, and be part of Apple's success with InstaForex, your reliable broker.