Shares of Apple (AAPL -0.69%) have climbed 43% in the first half of 2023, a stark improvement from the 27% it lost last year amid a market wide sell-off and macroeconomic headwinds. Investors have rallied over the company's long-term prospects in virtual/augmented reality (VR/AR) and its consistency as a solid growth stock.
Because it is the most valuable company in the world, with a market cap of $2.9 trillion, it might feel like it's too late to invest in this tech giant. Still, as the saying goes, the best time to invest was probably 10 years ago, but the next best time is today. Apple's stock has a history of consistent growth over the long term, making it an attractive option at almost any time.
Here's why Apple stock is a must-buy right now.
Apple is growing market share and attracting new customers
In 2022, Apple surpassed Alphabet's Android for a majority market share in smartphones in the U.S. The landmark achievement represents Apple's nearly unrivaled dominance in consumer tech, being the only smartphone manufacturer using iPhone OS. Meanwhile, Android is used by numerous companies, with a few being Samsung, Sony, and Alphabet.
The iPhone makes up just over 50% of Apple's total revenue and is a major sales driver in its other product categories. The connectivity between the company's devices and consistent design language throughout its lineup makes it more convenient for iPhone users to stick with Apple than stray to competing products. As a result, the tech giant has also achieved leading market shares in tablets, headphones, and smartwatches.
Apple's dominance in consumer tech makes its recent debut of the VR/AR headset, the Vision Pro, promising for its long-term future. The VR market alone is projected to expand at a compound annual rate of 45% through 2029.
The Vision Pro's hefty price tag of $3,499 will likely stunt sales of the first-generation product. But past pricing strategies could see Apple bring down the cost in future iterations of the headset, allowing the company to snap up market share in the lucrative industry.
It's the king of reliability and consistent growth
Apple's stock has risen 306% in the last five years, more than any company in what's considered the big five of tech. Check out the chart below for reference.
Data by YCharts.
The company has built a reputation for reliability with investors, allowing its stock to outperform its peers no matter the market conditions. Amid 2022's economic downturn, Apple's stock decline of 27% for the year was the lowest among all five companies in the chart above. Wall Street seems to retain its faith in the company's long-term outlook, even in an uncertain market.
The company's resilience has also paid off with product sales. Reduced spending in the tech industry hit countless companies over the last year, with Samsung and Xiaomi experiencing smartphone shipment declines of 19% and 24%, respectively, in the first quarter of 2023. But the same period saw Apple report a 2% rise in its iPhone revenue.
Consistent demand for Apple's products and services has also led to reliable financial growth. Since 2019, the company's annual revenue has risen 48%, while its operating income has climbed 68%.
The stability of Apple's business has caught the attention of some of the most famous investors, with Warren Buffett's Berkshire Hathaway dedicating almost 47% of its portfolio to the company. Apple shares have risen almost 400% since Berkshire first invested in 2016.
Apple's stock is slightly expensive, with a price-to-earnings ratio of 31. But the longer you hold, the less that figure will matter. The company's solid growth history, recent product developments, and quickly expanding services business make it a no-brainer buy.
