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5 Reasons Why I Invest In Apple Stock
I have been an avid Apple consumer ever since I got my very first Apple product wayyyy back in the early 2000’s: a bright green iPod nano. It’s amazing to think how far technology has come since then.
And Apple stock has reflected that, they’ve been steadily growing for years and years. No, they’re not a perfect company (in fact there could be an entire other article on the flaws of Apple), and yes, there is always a risk when you invest in stocks, but for me, the pros far outweigh the cons.
Here are my five biggest reasons why I am loving my Apple stocks:
1. History Of Incredible Success
There’s no denying that Apple (AAPL) is an international name.
Apple ranks #1 as the largest publicly traded U.S. company in terms of market value (larger than Google, or Microsoft, or Facebook, or Amazon, or Berkshire Hathaway…OK, you get it) and is also among the world’s largest companies in terms of total revenue. Shares of Apple are up nearly 12,000% since the launch of the very first iPod in 2001. Investors’ fascination with Apple is understandable when you consider the monstrous returns that the company has delivered to (very) patient shareholders over the years. (Click here for a complete history of Apple stock.)
2. Brand Loyalty
I believe Apple is unsurpassed in the ability to create a brand in the technology sector that has induced such unwavering loyalty.
Apple has convinced me to buy iPhone after iPhone after iPhone. I suggest to people that don’t have an iPhone that they should get an iPhone. And I don’t work for Apple, I just happen to have an iPhone.
Recently, I decided it was time for a new phone. I didn’t google “best phones 2017”, which is something that I would do with basically ANY other product I was interested in buying.
When I wanted to buy a shampoo, for instance, I googled “best shampoo”, “best moisturizing shampoo”, “what ingredients should be in a shampoo”, etc., and conducted some serious research. Then I clicked over the Amazon, searched for shampoo with Argan oil, and ranked the results by highest customer review. Then, I found the highest review with prime with the lowest price point at the time, and picked that shampoo (and it transformed my hair and cured my dandruff btw, so thanks Amazon for never leading me astray!). That is my usual approach when I decide I’m interested in a product.
Yet, when I decided it was time for a new phone, what did I do? I googled “iphone 6 vs 6 plus vs 7 vs 7 plus vs 8 vs 8 plus” and went from there.
I didn’t ask for the best phones of 2017, I just asked for Apple.
I’d like to also say that I’m (obviously not here but everywhere else in life) a pretty frugal person. The most money I’ve spent on a single product, in the past 3 years, was on a paddleboard (for a little less than $200 and that was only because I would have spent more than that if I paid to rent one every time I wanted to go out). Yet I dropped over $700 on the new iPhone without even blinking (or any regrets).
When that realization hit me, when I saw how they had convinced me to shell out hundreds of dollars (again), I bought more shares in Apple. I was absolutely astounded by the power a brand held over me.
Even if you had told me the new iPhone was total crap and that there was a new Android phone out there that could read your mind, I wouldn’t have even considered it. I would have bought the iPhone. It is amazing the level of dogged devotion Apple had created in me. If I am a very low spender and very thorough researcher of every other product I buy, yet am totally brainwashed by Apple to such an extent that I don’t even look at its competitors’ products, then what extent of power do they hold over your average spender, your average researcher?
I read an article recently about Apple Chief Design Officer, Jonathan “Jony” Ive, where he discussed where the inspiration for the iPhone came from: hatred. Hatred of the phones that they had been using.
The need for something better.
My new iPhone is truly elegant in its design, it’s sleek, it’s fast, its colors and pictures are beautiful, the list goes on and on. I do feel it’s elevated above its competition. I bought a clear case for it because I wanted to protect it, but I also wanted to be able to see its beautiful design.
3. Commitment To Quality
Apple has given me, for free, two (TWO!) brand new iPhones. Simply because I went into their store and said “hey my iPhone isn’t working right anymore”. They weren’t even completely broken, they were just having some issues. The employee looked at it and then handed me a new iPhone in the box in exchange for my broken iPhone.
One of the times the iPhone had been in the basic warranty period and the other time the iPhone was actually out of warranty. But I called Apple to appeal at the employee’s suggestion and they approved my request for a new phone anyway on that same day. So, then I got my second brand new free phone.
From my experiences, I truly feel that Apple cares about the quality of the product they put out and they will do what it takes to make it right if anything does go wrong.
Even on phones over a year old, out of the manufacturer warranty, encountering minor battery issues.
For me, I don’t care if a phone has some issues, because I feel with technology, there are always going to be issues. It’s just inevitable no matter how much a company invests in trying to prevent them.
What matters more to me is that the company will do what it takes to make them right when they do occur. And Apple did, and they did even more than I would expect out of a company. And that is why I will never leave them. The trust and the bond they created was through an exceptional product and exceptional service.
I mean, just look at my old (but still working!) iPhone:
It has had it rough! I’ve had it years and have literally dropped it on/off every surface imaginable. And yet it still works! I mean, granted, it doesn’t work perfectly, sometimes it has some pretty crazy glitches.
And of course, we have all seen phones this shattered that don’t work at all. But to be fair, Apple has never advertised that it’s a good idea to accidentally drop your iPhone 5 approximately 1000 times onto concrete. They never told me it would still work after I dropped it off the top of my car twice (yes, twice…). But it did!
4. Ability To Adapt
I’m not going to say every feature of every Apple product is innovative. It’s great that my new phone now supports wireless charging, but that feature has been around with other phones for years now. If anything, you could argue that Apple is pretty late to the game.
But they are adapting to the market.
Each year we notice that new phones change less dramatically than they did the year before. As we progress with technology, changes and big ideas begin to mean less and less.
Yes the new iPhone 8 is fast but so is the 7 and the 6. When you’re already lightning fast, it’s hard to notice a change to lightening even faster. Some Apple critics point to the lower-than-seen-in-the-past interest in the new iPhone 8 as a sign of lengthening phone upgrade cycles.
BUT, Apple may be able to offset any decline in iPhone sales with other products and services. The services segment produced $7.3 billion of revenue during the latest quarter, growing by 22% year over year. And the “other products” segment, which includes the Apple Watch, grew by 23% to $2.7 billion.
With each explosive market Apple adds to their portfolio, I feel my risk in investing them decrease. Variety is the spice of life and also my favorite investing word.
5. Warren Buffett Owns Apple Stock
(In case you live under a rock) Warren Buffett, CEO of Berkshire Hathaway, is extremely well-known as a phenomenally successful investor.
And he owns Apple stock (but not Google!…now that is interesting, no?). Now, of course I’m not saying you should do something just because someone else is doing something, but I do feel there is a lot to learn from studying how uber successful investors, like Buffett, invest.
I’ll admit it, my investment in Apple is really not based out of logic, like every other investment I’ve made.
Yes, they have an amazing history and promising future, but this is my one and only investment I’ve made because of emotions. I love my iPhone, I love Apple products.
I invested in them because I wanted to be a part of their company, literally. I mean, if I was already out here every day suggesting to anyone who asked (or didn’t ask…) that they switch to an iPhone, I might as well get paid for the growth Apple sees because of loyal customers like me converting others, right? How many more people are out there just like me, who haven’t bought new socks in years, but drop hundreds of dollars for the new iPhone, no problem? I wanted a part of the company that convinced me to do that.
Do you own Apple products? How about Apple stock? Do you feel that it was a good investment decision?