Last updated: July 4th, 2024
Apple is an undisputed pioneer in the technology sector, and a mega-cap stock — renowned for becoming the world’s first trillion-dollar company.
A consumer technology manufacturer, Apple is known for its innovation and design, from its trendy Macintosh desktop computers to the revolutionary iPod and iPhone.
Its market capitalisation reached US$1 trillion in 2018, and it made history again in mid-2023 by being the first public company to surpass US$3 trillion.
Interested in owning a piece of Apple? Let’s look at the facts surrounding the stock’s performance and show you how to buy Apple shares from Australia.
Above: Apple has significantly outperformed the S&P500 and the ASX500 since 2019. Zoom out for better long-term context.
How Has Apple Stock Performed?
As of June 2024, Apple is valued at over US$3.18 trillion.
Throughout 2023, its share price has surged 45% – despite overall revenue remaining flat.
Year-to-date the AAPL share price had a slow start to 2024, but has risen around 12%.
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In May ‘24, the company posted second-quarter revenue of $90.8 billion — a 4% decline from the same time last year.
iPhone sales declined almost 10%, but its Services segment remained strong — recording an all-time revenue record of US$23.9 billion.
Services includes paid subscriptions to offerings like iCloud, Apple Music, and Apple TV+.
(Related: How To Buy Nvidia Shares In Australia?)
Apple started 2023 on a less promising note, with a 5% year-over-year decline in revenue announced in Q1 ’23 (for the period ending 31 December 2022), primarily attributed to supply chain disruptions from China.
Important!
It was the first time in seven years that Apple’s earnings didn’t align with analysts’ expectations, and represented the biggest annual quarterly revenue drop since 2016.
Can AI Get Apple Out Of The Ditch?
Bullish forecasts around the AAPL share price — with some analysts setting a 12-month price target as high as US$275 — are predicated on its artificial intelligence (AI) plans.
Inflows into blue-chip tech giants in 2024 have been dominated by AI darling Nvidia, which briefly surpassed both Microsoft and Apple to achieve a market capitalisation of over US$3.4 trillion in June.
However, it’s reign as the world’s top stock lated just a few days.
AAPL stock lifted to an all-time high, rising 7% in a day, after unveiling Apple Intelligence, which will see the company integrate AI-enabled advances in native apps and ChatGPT access via the operating system used on iPhones, iPads and Macs.
Did You Know?
Apple is one of the famous five FAANG stocks, an acronym used to describe the most prominent tech companies (Facebook [now Meta], Apple, Amazon, Netflix and Google [now Alphabet]). Dominant big tech stocks are now known as ‘The Magnificent Seven’ and include Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.
Apple, Inc. (AAPL) Facts & Figures.
Each AAPL share is currently worth just over US$212.
The median 1-year target for Apple’s stock among analysts is US$212.41.
(Related: How To Buy Tesla Shares In Australia)?
Morgan Stanley warned in July 2023 that there’s reason to be wary of an imminent US stock market bust, based on “concerning disconnects in the markets that equity investors appear to be shrugging off”,
Additionally, while recent inflation figures showed slowing inflation in the US, there’s still a possibility of further rate rises by the Federal Reserve.
Important!
A strong greenback and higher rates would typically lead to a decline in stock prices.
It’s unclear whether a market correction will occur soon and if so, how sharp it will be.
(Related: Will The Aussie Dollar Recover In 2024?)
Why Are Some Bullish On Apple?
Facts that emphasise Apple’s strengths are:
- Strong brand recognition and brand loyalty.
- A solid track record of strong performance and pays dividends.
- Reputation for being a known innovator with diversified operations.
Why Isn’t Everyone A Fan Of Apple?
Facts that point to Apple’s possible decline are:
- Strong competition in smartphone, personal computing, services and smart devices markets.
- One of the more expensive US stocks to buy.
- Remains heavily dependent on iPhone sales for earnings.
What Do Apple’s Performance Metrics Say?
Here are the key facts about Apple as of 24 June 2024:
| P/E Ratio | 32.22 |
| PEGY Ratio | 2.20 |
| Return On Equity (ttm) | 147.25% |
| Shares Outstanding | 15.33B |
| 30-Day Average Volume | 67.79M |
Did You Know?
While the Android operating system is more popular globally, Apple’s iOS smartphones accounts for more than 55% of market share in the US and more than 50% in Oceania — two significant populations.
Frequently Asked Questions About AAPL Stock.
Learn these facts before buying Apple stock.
Has Apple Ever Had A Stock Split?
Yes. The company’s stock has split five times since Apple went public on December 12, 1980. On a split-adjusted basis, the IPO price was $10.
How Much Money Do I Need To Buy Apple Stock?
On 24 June 2024, one Apple share was worth US$207.49, which is around AU$313. However, some share trading platforms make investing in smaller sums via fractional shares possible.
What ETFs Hold A Lot Of Apple Stock?
As one of the top stocks in the S&P500, AAPL features prominently in a number of large-cap, technology-oriented ETFs. Investors can get exposure to Apple via ETFs like:
- BetaShares NASDAQ 100 ETF ($NDQ)
- iShares Global Tech ETF
- Vanguard Mega Cap Growth ETF
- Betashares NASDAQ 100 ETF (ASX: NDQ)
Important!
Holding ETFs instead of individual stocks may reduce the complexity of managing your investments while offering diversification benefits, as you’ll have exposure to multiple stocks (and possibly regions or sectors) instead of Apple, Inc. directly.
Does AAPL Pay Dividends?
Yes. Apple has paid out dividends, usually every quarter, since 2012.
Before that, dividend payouts were on hold, as Apple believed reinvesting profits into new projects would make more commercial sense.
Did You Know?
Apple’s competitors in the technology space, like Google and Amazon, have stuck to the same strategy. Neither tech giant has ever paid out dividends.
How To Buy Apple Stock In 3 Steps.
Australians can invest in Apple by using online share trading apps that provide access to international stock exchanges, including Apple’s NASDAQ exchange.
Here’s a three-step guide to getting started.
1. Set Reasonable Expectations.
Buying and selling shares involves risk. Only risk capital you’re prepared to lose.
Important!
Remember that Apple’s past results do not guarantee future performance. Don’t rely on guides like this one to influence your decision to buy or sell Apple stock.
Before you trade AAPL stocks, create an investment strategy with the help of a professional, ASIC-licensed financial advisor or planner.
2. Understand The Differences In Owning US Stock.
Buying Apple shares in Australia requires exchanging Australian dollars for US dollars, so an unfavourable AUD/USD exchange rate can make your investment more expensive.
Expert Tip.
You will also have to pay foreign exchange fees ranging between 0.5% and 1.5%.
Of course, selling your Apple shares when the US dollar is stronger than the Aussie could increase your realised profits.
Ownership of US stocks like AAPL is handled differently from how many Australians prefer to hold their ASX-listed stocks.
- In Australia, it’s possible to buy shares outright through a CHESS-sponsored broker. Your broker facilitates the trade, but you become the legal owner of the shares. This is recorded by the ASX, which issues you with a holder identification number (HIN). No matter what happens to the brokerage firm/app, your shares are connected to you personally.
- US stocks are sold via a custodial model, where the broker holds the shares on your behalf. You have the same beneficial rights as any other shareholder, receiving capital gains and returns, and can trade the shares as you see fit. A custodial model often enables brokers to offer lower fees and also supports fractional investing—where you can buy a fractional amount of one Apple share.
The third factor is how trading Apple stocks might impact your taxes. You’ll need to:
- Pay a 15% US withholding tax on any dividends you receive from your Apple shares.
- Pay tax to the ATO based on income received (dividends) and capital gains from AAPL stock.
You may be able to offset the foreign tax paid on your Australian tax return—check with your accountant if you’re not sure.
3. Choose A Broker And Sign Up.
US stocks like AAPL are bought and sold through share trading platforms and online brokerages.
If you already have a brokerage account for purchasing ASX-listed shares, check if they also offer access to US markets and, specifically, the NASDAQ, where Apple is listed.
If not, you’ll need to find a broker that does.
Here are a few must-haves to look for in a brokerage:
- Registered with ASIC (the Australian Securities and Investments Commission), with an Australian Financial License (check the fine print on the app’s website).
- Transparent fees. You must know how much of your capital will get eaten away by brokerage fees. Remember, fees lower your returns.
- Usability and its feature set. Most platforms and apps aim to be user-friendly but have different strengths. What appeals to you will depend on your experience.
How Do Trading Platforms Differ?
You might prefer a platform with a demo account, social/copy trading, or more advanced trading tools. Market orders and limit orders may not be available on all trading platforms, either.
Signing up for a trading account is usually straightforward, but be prepared to satisfy the brokers KYC (Know Your Customer) requirements by providing:
- Your personal details, including your name, contact details and date of birth.
- Your tax file number (TFN).
- A form of ID to verify your details.
- Your bank account number for depositing and withdrawing funds.
- A completed W-8BEN form will be required by the U.S. authorities.
Important!
Completing a W-8BEN form not only ensures compliance with US tax laws, it reduces the amount of tax you’ll pay on dividends from your Apple shares from 30% to 15%. The process for completing and submitting this form varies between apps.
4. Add Funds And Place Your Order.
Next, most brokerage accounts will ask you to:
- Transfer money to cover your purchase into your brokerage account.
- Find ‘AAPL’ or the ticker symbol of the ETF/fund you want to purchase via the app’s search function.
- Check that the current Apple share price is in line with your expectations.
- Enter the number of shares or the amount you want to spend, and select the order type (e.g., you can buy immediately at market rates or set limit or stop-loss orders to trigger the buy at specific price points).
- Hit ‘buy’ to execute the trade. You may have to wait around two days for the transaction to be settled.
It’s Easy to Buy Apple (AAPL) Shares In Australia.
But that doesn’t mean you should.
Apple is a gigantic, valuable company with a strong stock performance history.
But it’s a mistake to invest in any stock expecting guaranteed returns, or without gaining clarity about how the investment potentially supports your financial goals.
Jody
Nelson says:
I attempted to use the “hack” to dodge conversion fees, but sadly after converting AUD to USD on a Wise account, there doesn’t seem to be a way to deposit that money into eToro; i.e. eToro recently disabled Wire transfers and Wise doesn’t support SWIFT transfers for sending USD to a bank in the US?
John Keys says:
CMC Invest are an abysmal in turning around new accounts.
Over 1 month to setup up an account with an investment trust, and still waiting. I was promised 5 business days.
Reg Watson says:
Given that China’s economy is going down the toilet how the heck do we expect an appreciation of the Aussie in 2024 ? We are tied to China.