What is Apple stock, and how does Apple make money?
Apple stock is a share in Apple Inc., the US company behind the iPhone, Mac and iPad, and it trades on Nasdaq under the ticker AAPL. Alongside its devices, a large and growing part of Apple's income comes from services such as the App Store and iCloud. Here is what the company does, what moves its share price and what the risks are.
What is Apple?
Apple is an American technology company founded in 1976 in California by Steve Jobs, Steve Wozniak and Ronald Wayne. Its headquarters are in Cupertino, California.
Apple started with personal computers, but the launch of the iPhone in 2007 changed its course. Today it sells hardware, software and services together, which is why people talk about the Apple ecosystem.
Where Apple's revenue comes from
Apple's revenue comes from two broad areas, devices and services. The iPhone is still the company's largest single source of revenue.
- iPhone: Apple's smartphone and its most important product.
- Mac and iPad: laptops, desktops and tablets, running on chips Apple designs itself.
- Wearables and home: Apple Watch, AirPods and similar devices.
- Services: the App Store, iCloud, Apple Music, Apple Pay and other subscriptions that bring in recurring revenue.
Why AAPL matters to the whole market
Apple has been one of the largest companies in the world by market value for years, and AAPL carries a heavy weight in many major US indexes and funds. When Apple's share price moves, it moves those indexes too.
Apple also returns part of its profit to shareholders as a dividend and buys back its own shares. Its market value changes every day with the share price, so we do not put a number on it here.
What moves the Apple share price
AAPL follows what the market expects from Apple's future sales and profit. A few factors are always on investors' minds:
- Sales of each year's new iPhone, and how often people upgrade.
- Growth in services revenue, which carries higher margins than hardware.
- Supply chains in Asia and the Chinese market, both as a place to build products and a place to sell them.
- Competition cases and new rules about the App Store in the US and Europe.
- Interest rates and the general mood towards technology stocks.
Risks of Apple stock
Even a large, long-established company's shares go up and down. Heavy reliance on the iPhone means a slowdown in phone sales is felt across the business, and new rules for the App Store could put pressure on services revenue.
This article is here to explain the company, not to recommend buying it. No stock is guaranteed to rise, and you can lose part of what you put in.
Tokenized Apple stock in Waletifi
In the Stocks section of Waletifi, coming soon and enabled country by country, you can buy tokenized Apple stock with USDT. The token lives on Ethereum, tracks the AAPL price and is kept in your own wallet.
It is not the Apple share itself and carries no voting rights. The issuer can pause transfers or block an address, and its terms exclude some countries, including Iran and Afghanistan, so it may restrict addresses it links to them; weigh this like the other risks before buying.