How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Apple (AAPL) ten years ago? It may not have been easy to hold on to AAPL for all that time, but if you did, how much would your investment be worth today?

Apple's Business In-Depth

With that in mind, let's take a look at Apple's main business drivers.

Apples business primarily runs around its flagship iPhone. However, the Services portfolio that includes revenues from cloud services, App store, Apple Music, AppleCare, Apple Pay, and licensing and other services now became the cash cow.

Moreover, non-iPhone devices like Apple Watch and AirPod gained significant traction. In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods. Solid uptake of Apple Watch also helped Apple strengthen its presence in the personal health monitoring space.

Apple is expanding non-iPhone portfolio with the launch of Apple Vision Pro a spatial computer that blends digital content with the physical world.

Headquartered in Cupertino, CA, Apple also designs, manufactures and sells iPad, MacBookand HomePod. These devices are powered by software applications including iOS, macOS, watchOS and tvOS operating systems.

Apples other services include subscription-based Apple News+, Apple Card, Apple Arcade, new Apple TV app, Apple TV channels and Apple TV+, a new subscription service.

In fiscal 2023, Apple generated $383.29 billion in total revenues. The companys flagship device iPhone accounted for 52.3% of total revenues. Services, Mac and iPad category contributed 22.2%, 7.7% and 7.4%, respectively. Wearables, Home and Accessories products category contributed 10.4%.

Apple primarily reports revenues on a geographic basis, namely the Americas (North & South America), Europe (European countries, India, Middle East and Africa), Greater China (China, Hong Kong & Taiwan), Japan and Rest of Asia Pacific (Australia & other Asian Countries).

In fiscal 2023, Americas, Europe, Greater China, Japan and Rest of Asia-Pacific accounted for 42.4%, 24.6%, 18.9%, 6.3% and 7.7% of total revenues, respectively.

Apple faces stiff competition from the likes of Samsung, Xiaomi, Oppo, Vivo, Google, Huawei and Motorola in the smartphone market. Lenovo, HP, Dell, Acer and Asus are its primary competitors in the PC market. Other notable competitors are Google & Amazon (smart speakers) and Fitbit & Xiaomi (wearables).

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Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Apple ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in July 2014 would be worth $9,495.93, or an 849.59% gain, as of July 19, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 180.28% and gold's return of 79.01% over the same time frame.

Going forward, analysts are expecting more upside for AAPL.

Apples near-term prospects remain foggy due to sluggish China sales amid stiff competition. It expects the June quarters (third-quarter fiscal 2024) revenues to grow low-single-digit year over year. Unfavorable forex is expected to hurt revenues by 2.5%. Apple has been playing catch-up in the AI space compared with Alphabet, Microsoft and Amazon, its peers in the magnificent seven group. Following the launch of Apple Intelligence, its competitive position is expected to improve. Moreover, Apple is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade helped drive subscriber growth. Apples top-line benefits from strong growth in emerging markets and growing adoption of its devices among enterprises.

Over the past four weeks, shares have rallied 6.92%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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Originally posted here:
Here's How Much a $1000 Investment in Apple Made 10 Years Ago Would Be Worth Today - Yahoo Finance