For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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.
Apple’s 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.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.Apple’s 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 2021, Apple generated $365.82 billion in total revenues. The company’s flagship device iPhone accounted for 52.5% of total revenues. Services, Mac, iPad and Other products category contributed 18.7%, 9.6%, 8.7% and 10.5%, respectively.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 2021, Americas, Europe, Greater China, Japan and Rest of Asia-Pacific accounted for 41.9%, 24.4%, 18.7%, 7.8% and 7.2% 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).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Apple a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2012 would be worth $7,995.58, or a 699.56% gain, as of March 24, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 218.96% and gold's return of 12.55% over the same time frame.
Looking ahead, analysts are expecting more upside for AAPL.
Apple is benefiting from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints. Mac is benefiting from strong demand for newly redesigned MacBook Pro powered by M1 chip. However, iPad sales is expected to remain subdued due to supply-chain constraints. Apple did not provide revenue guidance for the second quarter of fiscal 2022, given the uncertainty around the impact of the pandemic. Nevertheless, Apple expects to achieve solid year-over-year revenue growth and set a second quarter revenue record despite significant supply constraints, which it estimates to be less than the fiscal first quarter. App Store, Cloud Services, Music, advertising and AppleCare will continue to drive Services growth. Shares have outperformed the S&P 500 in the past year.
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Access Zacks Top 10 Stocks for 2022 today >>Click to get this free reportApple Inc. (AAPL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.