The allure of a new iPhone is undeniable. From the groundbreaking original in 2007 to the latest models designed for the AI era, each release has brought with it a wave of excitement and, for many people, an immediate purchase.
But have you ever stopped to consider what you’d have today if instead of buying the latest iPhone, you’d put that money into Apple (AAPL:NASDAQ) stock? Here’s a look at how choosing company stock over a smartphone could have resulted in a surprisingly different financial landscape today.
Apple stock has been a great investment
In the table below, we’ve listed the release date and price at release of six different iPhone models, starting with the original (1st generation), which was released in 2007, and ending with the iPhone 15, which was released in 2023. The table shows the price of Apple stock (adjusted for stock splits) at each release date as well as the price adjusted for dividends. It also shows the return multiple using today’s share price of $211 and how much you’d have if, instead of buying the iPhone on the day it was released, you’d put the money into Apple stock.
| Model | Release date | Price ($) | Apple stock price at release | Price adjusted for dividends | Return multiple | Outlay now worth |
| iPhone (1st gen) | 29 June 2007 | $499 | $4.36 | $3.67 | 57.5 | $28,689 |
| iPhone 4 | 24 June 2010 | $599 | $9.61 | $8.08 | 26.1 | $15,642 |
| iPhone 6 | 19 September 2014 | $649 | $25.24 | $22.33 | 9.4 | $6,133 |
| iPhone X | 3 November 2017 | $999 | $43.13 | $40.34 | 5.2 | $5,225 |
| iPhone 13 | 24 September 2021 | $799 | $146.92 | $143.99 | 1.5 | $1,171 |
| iPhone 15 | 22 September 2023 | $799 | $174.79 | $173.29 | 1.2 | $973 |
It’s fair to say that the numbers are eye-opening. Had you put $499 into Apple stock on 29 June 2007, instead of buying a first generation iPhone, that money would now be worth about $29,000. Had you put $999 into Apple stock on 3 November 2017, instead of buying a brand new iPhone X, you’d now have over $5,000. Even if you’d bought Apple stock instead of the iPhone 15 in 2023, you’d still be sitting on a decent profit.
Overall, you’d have Apple stock worth $57,833 today.
It’s worth noting that while these calculations include the dividends that Apple has paid, they don’t factor in any reinvestment of these dividends or any return generated by them. If they were reinvested in Apple stock or invested in another asset, one could have generated even higher returns than those shown in the table.
The takeaway
Of course, in reality, most people wouldn’t forgo the purchase of an iPhone to invest in Apple stock. Today, we use our iPhones for communication, banking, music, maps, and much more so they are a necessity.
However, the calculations highlight the benefits of investing in successful companies like Apple compared to buying depreciating assets such as consumer electronics. While buying the latest technology can feel good at the time, investing money instead can yield far greater financial rewards in the long run.
Edward Sheldon has positions in Apple
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
