Amusing Apple Anecdote
Apple is in the news all week (and seemingly every week) thanks to a record quarterly profit, a “lost and found” conspiracy with an iPhone 4.0 prototype, and the ubiquitous iPad articles. Rather than rehashing the same lines of “hey, you know what is great/stupid about the iPad,” try this little anecdote instead:
If every Apple fanboy would have invested the same amount of money into Apple stock as they did into the products, the gains from the stock would have paid for the products several times over. For example, if you ran out to drop $499 on an iPad today, buy $499 worth of Apple stock today as well (about two shares).
Imagine this scenario: a young lad is impressed by the iPod in 2002 and finally decides to purchase one in April 2003 when the 3rd generation iPod is released. He instantly falls in love with all things Apple and decides to buy the products he wants the day they are released while also investing the same amount of money in Apple’s stock (AAPL).
Over the years, the boy has amassed an iPod, an iPod nano, a MacBook, a MacBook Air, an iPad (wifi only since the 3G isn’t available until April 30th), and every iPhone version released, including spending $599 for the first one. In the end, the boy has enjoyed a new phone each year and kept his other gadgets relatively fresh. The bad news is that it has cost him about $5,800. The good news? The other $5,800 he invested in Apple stock is now worth over $28,000! He can repay himself the $5,800 anytime he wants and still keep the $22,200 in profits invested and help pay for his Apple products for years to come, even if he doesn’t continue with his investing strategy.
I wish this young lad was me, but alas, he is fictional. He is still my hero, however, and you should tell his story at your next get together.
Read on:
Bloomberg.com – Apple Rises to Record After Jobs Vows New Devices
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