An Apple a Day…
As I scrolled my “news feed” (which is YouTube, by the way), for the latest videos, I ran across one highlighting the newest product from Apple. Apple (the company), holds their WWDC (worldwide Developers Conference) yearly to unveil their latest products, software upgrades (iOS, macOS), and technological advances in the industry. On the week of June 5, 2023, this year’s star offering was Apple Vision Pro — a VR headset complete with all of Apple’s integrations. This is apple’s foray into the market, to compete with products such as PlayStation’s newest headset, and Facebook’s Meta Quest 2. The Vision Pro will be available next year for $3,500.
I see the intrigue and the benefits of using virtual reality, but the announcement did not faze me much. I likely won’t buy it similar to how I have been about the Apple Watch since its inception in 2015. Save for checking my heart rate or abnormalities (I develop heart palpitations from time to time), it does not seem esential for my lifestyle. The same said for AirPods until I upgraded to iPhone 13 a couple years back (with the buds added on as a package deal offered by T-Mobile). I enjoy them for the wireless connectivity and the comfort of wearing them all day at work (common courtesy permitting) or while running errands. Still, the price of these electronics can be off-putting. You have Apple die-hards out there who will stan for the latest and greatest Apple offers. Let’s crunch some numbers to see how much it would cost if you bought 1 each of the major Apple products. Second, I’ll explain how Apple has integrated into almost every part of your life. Last, what is the one purchase you may be omitting?
It’s 2:00pm on Sunday, June 25th 2023. I’m typing my notes using the dedicated app on a MacBook Air I purchased around 7–8 years ago. Lo-fi Hip-Hop is currently playing on my iPhone. My AirPods are on the dresser, not in use at the moment. I only own those three Apple items, along with something else I will discuss later on. As I browse through Apple.com, I am looking to list the prices of the newest (or newish) products they offer:
MacBook Pro 14”- $1299 (and let’s omit the MacBook Air for redundancy)
iMac desktop — $1699
iPad Pro — $1099
iPhone 14 with 512GB of space — $1199 (direct purchase, not through a wireless provider)
Apple Watch Ultra- $799
AirPods 3rd Gen — $179
AirPods Max- $549
Apple TV 4K Streaming Device- $149
HomePod- $299
Apple One (with Apple Music, TV, Arcade, iCloud, News, and Fitness)- $32.95/month
Vision Pro (let’s imagine that it is available now)- $3499.
After 7–10 minutes of browsing, I believe to have covered everything. I have my laptop for when I do work at the coffee shop; my desktop for larger scale projects/editing/etc.; my iPad Pro to keep my (imaginary) child occupied; my iPhone, because I would be a hermit without some type of cellular device; my watch to check my calorie and fitness metrics when at the gym; my AirPods to use when at said gym; my AirPods Max, when at the airport for a long flight; my tv streamer box; my speaker and voice assistant aka HomePod; my headset for when I want to flex; and a bundle of apps and software all in one neat package.
Grand Total: $10,802.95. This number is a base figure of the biggest (or products with the most capacity and memory) versions. There are thousands of variations with customizations to suit your preference. Use AirTags to track your luggage and bags. Use your devices as a GPS and Emergency call system. Integrating Apple into your life can be quite the expensive investment. Given Apple’s track record, they build their products to last. They are and always will be the pillars of innovation.
Tim Cook, CEO of Apple since 2011 (successor to the late Steve Jobs) has a net worth of close to $2 Billion USD. Most of their base products are colored white- a simplistic and clean aesthetic. The Apple Campus is located in Cupertino CA- with the address named “1 Infinite Loop”. The company’s ecosystem is infinite. Everything is pristine, from the store layouts to the design of each product.
Before June 29, 2007, having your phone and music player all on one device was a rare sight to see. The first iPhone revolutionized and change the entire way we view, share, and consume media. Every year we witnessed the dawn of a new phase, service or product. In looking at the list above, I’m actually in awe at the way Apple has inserted itself into many major sectors of tech. “You don’t need that other phone, a normal watch, wireless earbuds, because we have our own.” Aside from the TV (as in physical television) market, they have all the bases covered. How will you pay for your products? Why use regular debit & credit cards when there’s the Apple Card. Want to pay over-time? Forget Klarna or Sezzle — use Apple Pay Later. Save for a home (or car) by opening up a high-yield savings account with them. Some of us are worried that A.I. and robots are taking over. Look around you — tech companies like Apple are the ones taking over and maximizing their profits any way they can.
Which brings me to my final point and question: are you fully invested in Apple? I’m not referring to the products you own, but an actual investment into the company. A few years ago, I submitted my previous iPhone to an Apple Store for a battery replacement. The process was around 2 hours so I killed time sitting in the nearest park. Someone with AirPods in their ears walked by. I thought to myself about how I didn’t own a pair, but at least owned some Apple Stock. As of this recording/writing, Apple Inc’s stock price is currently at $186.68USD on June 25th (checked again today on July 4th and their price is $192.46). You can invest in the company for the equivalent price of AirPods. For additional reference, Microsoft stock is at $335.02USD (at or around the price of the Xbox Series X). The price of Chipotle is valued at $2,043.68!! Crazy!! That is about the price of 200 chicken burritos. (numerical data obtained from Google Search). Chipotle has never slit their stock price, thus the high barrier to entry.
Apple’s low share price is due to stock-splitting. In the past, It was harder to purchase multiple shares of Apple, Tesla, Amazon, and others due to the high cost. Per SplitHistory.com, Apple has “split” its stock five times since 1987, with the most recent occurring in 2020. It was in 2020 when I purchased a few shares.
Per the site:
“When a company such as Apple splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.”
Companies use stock splits to allow for more buyers to enter the market. Given Apple’s stellar track record, profits and consumer base, as of June 2023, it’s valued at $2.94 Trillion USD. For comparison, given Microsoft’s high stock price, their Market cap is currently at $2.49 Trillion USD (numerical data obtained from Google Search). With the rise of no-commission fees on buying/selling most stocks, along with ease of use and gamification on certain platforms (Robinhood, Cash App, WeBull, etc.), the barrier to entry is very low. Buying stocks and investing into different assets is essential to grow your net worth for the long term. While I prefer stocks that offer a high dividend (Home Depot, for example, offers $2.09 in payouts as of 05/31/2023, vs Apple, at only $0.24), having Apple in your portfolio is important. You become, in essence, part owner of the company; that you are more than just a consumer. That is a mindset you must develop. Continue to support the companies that you are loyal to, but also play the other side of the field. Even if you don’t buy a stock of Apple directly, you can purchase shares of VOO (Vanguard S&P 500 ETF exchanges-traded funds), or Invesco QQQ, which holds it as well as a multitude of other companies in its portfolio.
They say an apple a day keeps the doctor away. Actually, an Apple a day keeps competitors away — as the company continues to dominate the market. Let’s begin to study and focus on the American financial market. The technology sector is predicted to expand even more in the near future. It’s time to ride that wave towards success.
Disclaimer: I am not a professional financial advisor and this article is opinion-based. Always do your due diligence and seek a professional for guidance.
