Apple share price: a real "success story", many historic moments

If you had invested 100$ in Apple shares at the start, how much money would you have earned today?

Introduction

Apple's share price performance over the decades is truly remarkable. We are not financial analysts, but we can take a "modest" look at the "miracle" that has taken place and has a name: "Apple stock price". We will try to focus on key metrics that we all understand in order to get a clear picture of the company's giantization, but also the ups and downs that occurred based on current (period-by-period) developments.

After all, contrary to the mentality that "ordinary people" have about investments, they should be made mainly with - at least - a medium-term plan and should not be based on short-term trends.

In most cases, share price trends were directly related to developments. But not always. In any case, it's a beautiful journey that reminds us of Apple's good and bad times.

Notes: in brackets are the approximate adjusted prices to the current number of shares, resulting from the successive splits over the years

Apple share price: background

On December 12, 1980, Apple made 4.6 million shares of Apple stock available to the investing public, with an initial price of 22$. At the end of the day, the stock closed at 29$, up 32%. By today's standards (and having factored in the four splits: 1987 - two-to-one, 2000 - two-to-one, 2005 - two-to-one & 2014 - seven-to-one that occurred along the way), we could "translate" Apple's share price close to 0,50$.

In January 1984, with the debut of the Mac, the share price reached 26$. Analysts argue that the idea of using a mouse on a computer seemed ridiculous to investors at the time (€0.40).

In May 1985 the mood in the company was not good. The Board of Directors completely covered for John Sculley and showed Steve Jobs the way out. Which finally happened a few months later. Apple share price: 18,12$ (0,28€).

June 15, 1987: Despite Jobs' departure, the share price rose remarkably and hovered around the 78$. The first split was then decided, with a ratio of two to one (1.21$).

October 2, 1991: After prolonged pressure from the Wintel PC's industry (the informal partnership between Microsoft and Intel), Apple decides to ally with IBM and Motorola to create processors based on a completely different technology from Intel's, called Power PC. Share price: 49,75$ (1,60$).

The 68000 series of processors (Power PC technology)

August 2, 1993: After many delays, the company released the long-awaited digital assistant, Newton. Steve Jobs returned several years later and killed the project overnight. The stock price was hovering around 28,50$ (0,93$).

Apple Newton

August 1995: Windows 95 threatens Mac OS. It is, after all, the first attempt by Microsoft that seems capable of "coming close" to the user experience that until then only Apple OS users had enjoyed. Apple share price: 45,75$ (1,54$).

July 1997. Apple is one step closer to bankruptcy. The stock price is just above 13$ and Steve Jobs is urgently called upon to take the reins (0.46$).

August 15, 1998. A big hit was born, called the iMac, and it was to change the future of personal computers. The stock was trading at 40$ (1,36$).

In June 2000 the share price exceeded the 90$ and it was decided to split the second split again at a ratio of two to one (3,41$).

In October 2001, at a time when the stock was under heavy pressure (18$ - extremely poor performance, including the split), Apple announces the iPod. And the rally begins...(1,22$)

The first iPod

In 2005 the "Halo effect" has already begun. iPod sales act as an introduction and welcome to Mac computers. Mac sales are growing all the time. The share price exceeds 88$ and the third split is a fact, again by a ratio of two to one (6.00$).

2007 sees the debut of the iPhone. Comments are unnecessary. The share price soared to 122$ (16,45$).

On April 3, 2010, the first iPad was unveiled and the rally continued (share price: 236$). (adjusted price: 31,80$)

On 5 October 2011, Steve Jobs is leaving, but he has first appointed his replacement, Tim Cook. The share price has now reached 378$ (50,97$).

1 August 2013 is a historic date. For the first time, Apple, surpassing Exxon Mobil Corp., becomes the world's largest publicly traded company. Its share price has surpassed 450$ (62,86$)!

On June 9, 2014, the company went for the fourth (and final) split, this time at a seven-to-one ratio. Due to the huge profitability generated mainly by the iPhone, the stock soared to prices above 600$ (91$).

The course of Apple's (adjusted) share price

Financial Report

Apple's stock is currently "trading" near the 110$ (after the seven-to-one split) and its market value is over $600 billion! If someone in 1980 had invested 100$ by buying Apple shares, today, he could cash them out by adding about $29K to his wallet. In addition, he would have earned "some change" from the occasional dividends the company distributed.

Epilogue

But now the trends are different. It is really impossible, no matter how much effort Apple puts in, no matter how much its engineers innovate, to maintain its stock market value at these levels. It does not trade oil, but consumer goods that are not "necessary" for the entire world population to own. Of course, we have been hearing this for several years now. Do you think it will manage to surprise us again and make us (again) reach deep into our pockets?

by Kostthem