How to Buy Apple Stocks: An Investment Guide

Buying Apple stocks: how to invest

1. Research Apple shares
2. Download the IG Invest app or open a share dealing account online
3. Decide how many shares you want to buy
4. Place your investment

How much will it cost to buy Apple stocks?

Apple is a US share listed on the US Tech 100 so when buying from the UK, an FX fee will need to be paid.

What to consider before buying Apple shares

Before buying Apple shares it’s important to have an investment plan in place.

To develop an investment plan that suits you, it’s worth considering the following things.

What are your long-term goals?

Knowing why you’re investing can help you make important decisions such as the amount of time you’re looking to hold the share before selling, and the total amount of capital you’re looking to invest.

Investing also comes with risk so before you begin it’s important to determine if, long— term, you can afford to lose money if the markets turn against you.

When will you need the money?

Generally speaking, investing provides greater returns than cash savings, but for optimal results shares are usually held for several years. If you need the money sooner, it's worth considering shorter term strategies such as trading or opting for lower risk investments.

Although no investment is risk free, Apple is a mature company and therefore less volatile than some newer stocks. With its well renowned products and services, the company is considered by most to be a lower risk investment and could be a good option if you need the money back in the short to medium term.

How much risk can you take?

Financial markets can be volatile and unpredictable and there’s a risk you could lose the money you put in. It’s therefore important to develop a risk management strategy to help minimise losses. This could include:

• Diversifying your portfolio with both high and low risk assets
• Closely monitor the markets
• Take a long— term approach with the view of building wealth over several years
• Place a stop or limit order

How to research Apple stocks as an investment

One of the best ways to research the price performance of Apple shares is through fundamental analysis. This approach looks at external factors that could impact its stock price and analyses financial statements. For the best overview, it’s worth comparing Apple’s performance with that of other tech stocks. Here are some key things to look out for:

Dividend yield

A dividend yield indicates the amount of money the company pays out to shareholders as a percentage of its current stock price. It shows the dividend only return on a stock. If the stock price falls the yield will rise and vice— versa. To calculate Apple’s dividend yield, divide its annual dividends per share by its price per share.

P/E ratio

P/E ratio helps indicate to investors the market value of a stock and whether or not it’s over or undervalued. What’s considered a good P/E ratio varies between sectors so it’s worth comparing Apple’s P/E ratio to other tech stocks to get a good overview. To calculate its P/E ratio, divide Apple’s current share price by its EPS.

Business model

A business model refers to the ways a company is looking to make profit. This includes products, services, anticipated costs and target markets. As the company matures and market demand changes, successful companies will adapt their business models accordingly, so they are able to meet consumer needs whilst maintaining a competitive price and a sustainable cost.

Apple’s business model centers around selling its popular products such as the iPhone, iPad, MacBook and Apple Watch. Another part of its revenue is through subscription services such as Apple TV+, Apple Fitness and Apple Music.

Return on Equity (ROE)

ROE measures return on assets — it's expressed as a percentage. ROE is calculated by dividing net income by stakeholder equity. A low ROE could be a possible indicator of overvalued shares. That’s because it would show that Apple is not generating a lot of income relative to the amount of shareholder investment.

Why buy Apple shares

Apple's share price has grown significantly in recent years, driven by a diversified product lineup and expanding services. While the smartphone market remains competitive, Apple has maintained strong iPhone sales through innovation and brand loyalty, particularly with the introduction of 5G models and Apple Intelligence.

Apple no longer reports quarterly unit sales for individual products, instead focusing on revenue figures for major product categories. This shift has been generally accepted by investors.

The company's services business has become a major growth driver, surpassing its previous $50 billion revenue goal. Successful launches include Apple TV+, Apple Arcade, Apple Fitness+, and the Apple One bundle. The performance of these services, along with established offerings, remains a key indicator of Apple's financial health.

Apple continues to pay quarterly dividends and maintains a large share repurchase program, both of which have increased over time, making it an attractive stock for some investors.

What to do after you buy Apple shares

Once you have purchased Apple shares it’s important to manage your position on our platform or the IG Invest app. Market movements can be volatile and unpredictable so it’s worth keeping an eye on stock performance and recent market news to make informed decisions.