Astonishing Apple

Facts About this Revolutionary Company and Its Stock

Astonishing Apple
October 23, 2014

With the recent release of the new iPhones and the introduction of the Apple Watch and Apple Pay platforms, it’s time to take a look back at the remarkable run of Apple (NASDAQ: AAPL) — a company that truly has revolutionized the world, as it hinted at in its famous “1984” commercial during the Super Bowl that year.

Here are a few interesting facts about Apple and its financial performance.

The company was founded in 1976 as a partnership between Steve Jobs, Steve Wozniak, and Ronald Wayne. Never heard of Ron Wayne? He sold his shares back for $800 after only 12 days with Apple. Wayne claims no regrets, stating that Apple was not his passion.

The Apple IPO was issued in December 1980, offering 4.6 million shares of stock at $22 per share. By the end of the day’s trading, the market cap reached just under $1.8 billion. Had you invested $5,000 in the Apple IPO, your stock would be worth approximately $1.3 million today.

As of this article, Apple has the largest market capitalization of any U.S. company at approximately $600 billion, with only $31 billion in debt and $38 billion in cash reserves. Apple’s market cap far exceeds the next two largest companies (Exxon Mobil (NYSE: XOM) at $387 billion and Google (NASDAQ: GOOG) at $368 billion, respectively.)

Apple’s revenue in 2013 was $171 billion, or approximately $23.60 for every man, woman, and child living on earth at the time. In the 1st quarter of 2014, their sales totaled $43.7 billion, outpacing the combined sales of Google, Amazon (NASDAQ: AMZN), and Facebook (NASDAQ: FB).

Apple employs approximately 80,000 people worldwide.

Apple has undergone four stock splits in its history: 2 for 1 splits in 1987, 2000, and 2005, as well as a 7 for 1 stock split earlier this year.

The first Apple computer sold for $666—not to tweak fundamentalists with the “mark of the beast” but just to reflect a 33% increase over the $500 wholesale price. Fundamentalists have probably gotten over it by now.

If you had bought Apple stock instead of your first iPod when they were released in October 2001, your $399 investment would have netted over $16,000 at the current stock price.

The phenomenal early growth of Apple sent it into the Fortune 500 list in 1983 (at #411), making it the fastest-growing company in history at the time.

As of 2011, Apple stores sold an average per store of over $93,000 in products. That’s approximately $65 per minute, assuming 24/7 operations.

At one point in July 2011, Apple had more cash reserves than the U.S. Treasury. Apple’s reserves were $75.88 billion, compared to $73.77 billion at the Treasury at that time. Of course, Apple also had considerably less debt at the time as well.

The total number of iPods sold, as of September 2014, is approximately 350 million. iPads? Only 225 million… but that’s in just 4-1/2 years.

Total sales of iPhones reached 100 million in February 2011 and reached the 200 million mark approximately one year later. Sales accelerated from that point, with 340,000 iPhones sold per day in 2012.

In March 2014, Apple sold their 500 millionth iPhone. At the current pace, total iPhone sales may hit 600 million in early 2015, if not before.

Apple has managed to reinvent itself several times in its history to maintain its innovative and disruptive status, as well as its income. It will be interesting to see whether the Apple Watch or Apple Pay starts the next round in the Apple revolution, or if something currently on the Apple drafting boards will be the next major push that sustains Apple’s astonishing run.

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