Which Wins? Investing in Apple Shares vs. Buying a New iPhone
Let’s play a game of ‘what if’. What if, instead of queuing up outside Apple stores every year to snare the latest iPhone, you took that money and invested it in Apple shares? Would you be lounging on a private island right now, sipping on a cocktail? Or would you just have a slightly heavier wallet?
Having seen the discussion on social media, we couldn’t resist a tongue-in-cheek examination of the debate. So, let’s find out.
The iPhone Obsession
Every year, like clockwork, Apple releases a new iPhone. And every year, without fail, millions of us rush to buy it. The iPhone 15, despite its lukewarm reception, is no exception. It’s set to be another blockbuster, with fans eagerly awaiting its release.
But why? Why do we feel this insatiable need to own the latest model, even if the upgrades are, let’s be honest, a tad underwhelming?
Remember the first iPhone in 2007?
That was a game-changer. But now, many argue that the changes are more incremental. A new camera here, a USB-C port there. Yet, we’re still hooked.
Because it’s not just about the phone. It’s about the status, the brand, the feeling of being ‘in the loop’.
The Power of Hindsight
But let’s rewind a bit. Imagine it’s 2007. You have a choice: buy the first-ever iPhone or invest that money in Apple shares. Which do you choose? Well, most of us, understandably, went for the shiny new gadget. But what if you’d taken a different path?
Sumit Behal, a savvy individual on X (the platform formerly known as Twitter), did the maths. And the results? Staggering! If you’d invested the cost of every iPhone, from 2007 to now, into Apple shares, you’d be sitting on a cool £295,886,410.
Yes, you read that right. From a mere £13,700 investment over the years, you’d now have almost £300 million.
Let that sink in for a moment.
If you had bought Apple shares worth of every new iPhone model on Apple event day from 2007 , you would have converted 17,000 dollars to 367 million dollars
— Sumit Behal (@sumitkbehal) September 12, 2023
The Reality of Investment
Now, before you kick yourself for not being a stock market genius, let’s take a dose of reality. Investing can involve risks (even more so without the help and advice of proven wealth management experts like Questa!). There’s no guarantee of returns.
Apple’s meteoric rise wasn’t a given. It faced competition, scandals, and market fluctuations. But it thrived. And those who believed in its potential from the start? They reaped the rewards.
But here’s a thought: would you have held onto those shares for all these years? Or would you have sold them at the first sign of profit? Investing isn’t just about buying; it’s about holding and believing in the long-term potential of a company. And that requires patience and foresight.
The Joy of Ownership
On the flip side, let’s not discount the joy that comes from owning a new gadget. The thrill of unboxing, the satisfaction of having the latest tech, the countless memories captured on that camera. Can you really put a price on that? Well, yes, about £13,700 over the years. But the experiences, the connections, the moments? Priceless.
The Hidden Costs of Skipping the iPhone
But wait, there’s another side to this coin. Let’s consider the opportunity cost of not owning an iPhone. Sure, you might have a mountain of Apple shares, but without that iPhone in your pocket, what might you have missed out on?
The iPhone, for many, isn’t just a phone. It’s a productivity powerhouse. It’s where deals are made, emails are sent, and connections are forged. It’s your personal assistant, your camera, your entertainment centre, and your gateway to the world. Without it, would you have been as efficient in your daily tasks? Would you have missed that crucial email, that vital FaceTime call, or that app that streamlined your work?
The Power of Dividends and Delegation
Now, let’s entertain a thought. With the dividends from those Apple shares, you could probably hire a personal assistant or even a small team! They could manage your emails, schedule your meetings, and ensure you never miss a beat. With the right investments, your money can work for you, allowing you to delegate tasks and focus on what truly matters.
But there’s a catch. Would it be the same?
Can a team truly replicate the convenience and efficiency of having the world at your fingertips? It’s a balance, isn’t it? The immediate benefits of a tool that enhances your productivity versus the long-term gains of a wise investment.
So, while the dividends might pay for assistance, there’s an intangible value in the immediacy and personal touch of handling things yourself with your trusty iPhone. It’s a dance between the tangible and the intangible, the immediate and the future. And in this dance, every step, every decision, shapes the rhythm of your life.
So, Who Wins?
After this maelstrom of indulgent overthinking, who emerges victorious? Is it the investor with their mountain of cash? Or the tech enthusiast, with their treasure trove of memories?
Perhaps we’ll never truly know the answer.
But next time you’re faced with a choice – to buy or to invest – remember this story. Think about the long game. And whatever you choose, make sure it’s right for you.
After all, life’s not just about the destination. It’s about the journey. And whether that journey is filled with shiny gadgets or smart investments, make sure it’s one you enjoy.
The information provided in this article isn’t personal advice. It is a commentary on media discussion about an issue we feel is valuable and/or interesting. We’ve based our details on reliable sources, but we can’t guarantee their accuracy. Questa Chartered isn’t required to update this information.