How to buy and invest in Apple shares
Learn how to buy Apple shares with our investment guide. Discover AAPL stock analysis, costs, and key factors to consider before investing.
Apple is one of the world's most valuable companies. Here's everything you need to know about buying Apple shares.
Buying Apple stock: step-by-step guide
- Research Apple shares: analyse the company's financial performance, product pipeline and competitive position before investing
- Open an account: download the IG trading app or open an online share trading account
- Decide how much capital you want to allocate: take into consideration your risk tolerance
- Place your investment
What to consider before buying Apple shares
Before buying Apple shares it’s important to have an investment plan in place. Considering the following things.
Understand your financial goals
Identify both short-term and long-term goals to guide your investment amount and holding period. Knowing why you're investing helps determine how long you plan to hold shares before selling.
Know when you'll need the money
Generally speaking, investing provides greater returns than cash savings, but shares are usually held for several years for optimal results. If you need money sooner, consider shorter-term strategies or lower-risk investments.
Apple is a mature company and therefore less volatile than newer stocks. With well-established products and services, Apple is considered a lower-risk investment suitable for short to medium-term goals.
Assess your risk tolerance
Financial markets can be unpredictable and you could lose money. Develop a risk management strategy including:
- Diversifying your portfolio with both high and low-risk assets
- Taking a long-term wealth-building approach
- Monitoring market developments closely
- Consider using stop or limit orders
How to research Apple stock as an investment
Fundamental analysis is one approach to research Apple shares performance. This method examines external factors that could impact stock price and analyses financial statements. Compare Apple's performance with other tech stocks for the best overview.
Dividend yield
A dividend yield indicates the money a company pays shareholders as a percentage of current stock price. Calculate Apple's dividend yield by dividing annual dividends per share by price per share.
P/E ratio
P/E ratio helps indicate market value and whether a stock is over or undervalued. Compare Apple's P/E ratio to other tech stocks for context. Calculate by dividing Apple's current share price by its earnings per share (EPS).
Business model
Apple's business model centres on selling popular products including iPhone, iPad, MacBook and Apple Watch. Revenue also comes from subscription services like Apple TV+, Apple Fitness+ and Apple Music.
Return on equity (ROE)
ROE measures return on assets as a percentage, calculated by dividing net income by shareholder equity. Low ROE could indicate overvalued shares, showing limited income generation relative to shareholder investment.
Why buy Apple shares
Apple's share price has grown significantly in recent years, driven by diversified products and expanding services. While the smartphone market remains competitive, Apple maintains strong iPhone sales through innovation and brand loyalty, particularly with 5G models and Apple Intelligence.
Services growth
Apple's services business has become a major growth driver, surpassing previous revenue goals. Successful launches include Apple TV+, Apple Arcade, Apple Fitness+ and Apple One bundle.
Shareholder returns
Apple continues paying quarterly dividends and maintains a large share repurchase programme, both increasing over time, making it attractive for income-focused investors.
Product innovation
The company's focus on premium products and ecosystem integration provides competitive advantages in consumer technology markets.
Remember that share prices can fall as well as rise, and past performance doesn't guarantee future results. Consider your investment goals and risk tolerance before investing.
What to do after you buy Apple shares
After purchasing Apple shares, monitor performance through your trading platform or IG app. Market movements can be volatile, so stay informed about stock performance and market news to make informed decisions about your investment.
Regular portfolio reviews help ensure Apple shares remain aligned with your investment goals and risk tolerance.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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