Buying the Hype or Investing in it — Apple iPhone
This is part of a series analyzing the hype of buying the popular product at the time compared to if you had invested into that company at the time.
The original generation iPhone was revealed by Apple on January 9th 2007 but it did not go on sale till June 29th 2007. The original iPhone base 4GB model cost $499 US.
At the same day, AAPL stock closed at $122.04 US/ stock.
Breakdown of Data
Now if you like data like myself, you want to know how I got to that conclusion. Here below is the breakdown by each step to consider while analying stocks. You must consider the original investment but also the change in time to the stock like stock splits and dividend payments.
For sake of easier calculations, since the stock cost $122.04, you could have bought 4 AAPL stocks on release day with $10.84 left in your wallet to pay any fees for investing.
Over the course of owning the stock from 2007, there has been 2 stock splits. Making an original 4 stock investment, worth 112 stocks by the end of Dec 2021.
Fun fact, AAPL has stock split 5 times in it’s life.
Since the stock split throughout the time of the investment we need to calculate the dividend payment based on the number of stocks owned at specific times. Here is a summary and then a broken down version of it by declaration days.
Pretty crazy that just on the dividend payments you could have bought the iPhone and had lots of cash left over.
Hope you enjoyed this breakdown, follow ifiinvested.in on twitter for future posts like this.
Happy Investing, or not!
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