AAPL Stock – The definitive guide

AAPL Stock - The definitive guide

AAPL historic performance

Apple Inc., formerly Apple Computers Inc., is a renowned American multinational corporation. AAPL designs and produces computer electronics such as the iPhone, Macintosh, and the iPad. Apple Inc. has also made its presence felt in the software industry, through its innovative software packages such as the Mac operating system, iTunes Media, iWork Suite, and the iLife Suite.

Early History

In 1971, Steve Jobs and Steve Wozniak began a friendship out of their passion for electronics. It took them some time before they finally decided to start a joint company, Apple I Computer, in 1976.

It took the company close to four years before Jobs and Wozniak finally decided to go public. Apple finally decided to go public in 1980, and it is understood that it opened at $22 per share. On this day, AAPL enjoyed a market cap of $1.2 billion.

After going public, Apple was set for a rough start, which eventually saw the two founders leave the company in 1985. Wozniak left first after surviving a plane crash. Later in the year, the board of directors decided to fire Jobs. These developments, coupled with poor management, saw the company perform dismally, with prices falling to $2 a share years later.

New Beginnings: 1997 to 2005

Steve Jobs was recalled in 1997 as interim chief, 12 years after leaving the company. He started by restructuring the company’s production line. After his appointment, in the same year, Jobs announced that Apple would work with Microsoft, which injected $150 million (non-voting stock). This move significantly boosted investor stocks.

Having hit the ground running, Apple started developing a colorful and translucent desktop in 1998. This was just the start, and in 2000, the iMac was released. The iMac was only a quarter of the size of most computers at the time and performed much better. The sales volumes for the iMac saw the company make a profit for the first time since 1993.

The stability in the company saw Apple buy several companies to bring together a portfolio of software developers. After acquiring Macromedia’s Final Cut Software in 1998, Apple was able to get into video editing. The following year, Apple Inc. released two video editing software packages; the Final Cut Pro for professionals and the iMovie for consumers.

Apple Inc. opened retail stores in Virginia and California in 2001. It also launched the iPod in the same year. This was great news at the time, as it transformed the way people enjoyed music. To date, Apple is credited not only for inventing the first MP3 player, but also for creating the most successful music player; it sold over 100 million iPod units.

The Mobile Era: 2005 to 2011

In June 2005, while delivering a keynote address at the Worldwide Developers Conference, Jobs announced Apple would be launching Intel-based computers in 2006. And true to his word, in January 2006, the MacBook Pro and iMac were released. These developments saw the share price rise from $6 to over $80, between 2003 and 2006.

The year 2007 saw Apple change its name to Apple Inc., and this was climaxed by the launch of the iPhone and Apple TV. These new developments also marked the beginning of the mobile revolution. Ever since iPhones have enjoyed record sales. Ten years after its launch, in 2017, the iPhone was ranked as the best-selling tech-product in the world.

As of 2007, the share prices rose to over $100. Some notable developments in this era include Apple’s decision to sell music on iTunes, and selling third-party applications on Apple store. The launch of the iPad and the release of the iPhone 4 set the company for success.

On January 2011, through an internal memo, Steve Jobs took a leave of absence for medical reasons, before his demise the same year. Tim Cook was appointed CEO of AAPL. Under the leadership of Steve Jobs, AAPL’s market cap stood at $360 billion.

Post Jobs Era

Job’s death marked the end of an era for AAPL. The first major announcement was made on January 2012, and this was the launch of the iBook Author for the Mac OS, and of Textbooks for iOS, as a way of satisfying Job’s dream, as stated in his biography, of improving education by reinventing the textbook industry. Notwithstanding, 2012 also saw the release of the iPhone 4S, the iPhone 5s, the iPad Mini, and the third generation 13-inch MacBook Pro.

From an investor’s perspective, Apple purchased a mapping company known as C3 at $240 million in 2012, which was the third mapping company which AAPL had bought in its existence. On January 10th, 2012, Apple also acquired an Israeli company, Anobit, which was meant to bolster the company’s signal processing technologies.

As of 2012, Apple’s shares retailed at $380 per share, and its market capitalization stood at $360 billion. AAPL market capitalization kept on rising, but in 2014, the share prices dropped significantly when AAPL stocks split. The market trends seemed to favor AAPL, and this prompted Warren Buffett, who has always been skeptical about technology investments, to buy more than 9.8 million shares in 2016. In 2018, having hit the $1 trillion mark, AAPL shows no signs of slowing down.

Recent Milestones

After looking at what has happened in the past, here are some key milestones which have been realized in the post jobs era:

  • The launch of the iPhone 6 and iPhone 6 plus in 2014, which saw AAPL selling 10 million units in three days
  • Warren Buffett buys shares worth $1 billion
  • Apple acquires Beats Electronics for $3 billion
  • AAPL reports a quarterly profit of £12.4 billion, a record for any public company

Recent Challenges

Some recent challenges faced by AAPL include:

  • The loss of Steve Jobs
  • Dwindling iPhone demand, owing to high competition in the mobile markets
  • Challenges in coming up with the next big thing

Any investor who bet big on AAPL in the 90s, and held on to their shares, is enjoying a goldmine today. As a company that enjoys a market cap of $800.42 billion, and a share price averaging at $170, the hype which comes with most of their innovative products, such as the iPhone X, should give you a reason to invest.