Apple (AAPL 1.22%) has achieved more than most in its 47 years of business, becoming the world's most valuable company with a market cap of $2.9 trillion and dominating nearly every product category it has entered. In the past 10 years alone, its stock has soared over 1,000%, bolstered by product announcements such as the Apple Watch in 2015, AirPods in 2016, and Vision Pro in 2023.
With such immense growth over the years and a substantial product lineup, you might think the best time to buy Apple stock was long ago. However, the company continues to offer investors attractive gains over the long term. Meanwhile, recent announcements suggest Apple has no plans to stop innovating and continues pushing the consumer tech industry forward with its designs.
Here's why it's not too late to buy Apple stock.
Consistent growth fueled by unrivaled brand loyalty
Apple shares have risen more than 145,000% since the company went public in December 1980. However, the tech giant continues to see reliable growth, with its stock up over 300% since 2018. Apple's success is primarily thanks to the immense brand loyalty it has built with consumers, which has almost guaranteed its success in new ventures.
Last year, Apple achieved a majority market share in U.S. smartphones, overtaking Alphabet's Android. The milestone strengthens Apple's outlook considering how seldom consumers switch smartphone operating systems. Meanwhile, the company's walled garden of products means the more iPhone users, the more sales in its other product categories.
Shopper allegiance to the iPhone is largely why Apple has achieved leading market shares in tablets, smartwatches, and headphones. The connectivity between all of the company's devices makes consumers less likely to try out competing products, not to mention the discomfort of losing out on popular apps like FaceTime and Messages.
Apple's product strategy has seen annual revenue rise 68% in the last five years, with operating income up 48%. The company continues to deliver reliable financial growth alongside consistent product demand, indicating a bright future ahead.
What's next for Apple?
The Apple brand has garnered fans worldwide, with consumers drawn to its emphasis on quality and the easy-to-use design language that's present throughout its products and services. It's these characteristics of Apple's business that make its ventures into new product categories more exciting than concerning. In the last five years, the company has expanded its position in two key markets that could help its business soar over the long term: digital services and virtual/augmented reality (VR/AR).
Apple has been in the digital service game for a while now with iCloud and other offerings. However, the launch of its streaming service Apple TV+ in 2019 came alongside several other subscription-based platforms such as Arcade, Fitness+, News+, and more. The push into the market has resulted in services becoming Apple's second-highest-earning segment after the iPhone, with revenue rising 14% in fiscal 2022 (double the growth of its smartphone business).
Services diversify Apple's earnings, allowing it to depend less on product sales. Meanwhile, the segment offers attractive profit margins of around 70% compared to products' 36%.
Moreover, June 5 brought the highly anticipated debut of Apple's first VR/AR headset, the Vision Pro. The device has seemingly made leaps in innovation, displaying several features never before seen in past headsets.
Vision Pro's launch price of $3,499 priced out many consumers and made critics skeptical of its potential. However, Apple is likely playing the long game, with plans to bring down the price in future iterations of the device.
In the meantime, Apple can improve its VR/AR technology, build hype, and grow its position in a market projected to expand at a compound annual growth rate of 45% through 2029. It might take years, but if Apple can recreate its past success when entering new product markets, moving into VR/AR could become a highly profitable business.
Apple may be dominating multiple markets, but it's shown no signs of slowing down. The company's history of consistent growth, immense brand loyalty, and ventures into new sectors suggest it's not too late to invest in this tech stock.
