Apple Inc., founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, is a multinational technology company that designs, develops and sells consumer electronics, computer software and online services. It is the world’s leader in mobile communication and media devices, personal computers and portable digital music players. Famous Apple products include the iPhone, iPad, iMac, iPod, Apple Watch, Apple TV, and the iOS software. Today, there are more than 1.5 billion active Apple devices across the globe.
Over the years, Apple has grown to become one of the world’s most valuable companies by market capitalisation and the largest by revenue. The company’s segments comprise the Americas (both North and South America), Europe (dealing with European, African, India and Middle Eastern Countries), Greater China (China, Hong Kong and Taiwan) and Japan and Rest of Asia Pacific (including Australia).
In August 2018, it became the first public US company to be valued at more than $1trn (£800bn, € 920bn. Alongside Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet’s Google (GOOGL), Apple forms the FAANG group, an entity that represents the five most popular and best-performing US-based technology firms.
Apple stocks are traded on the NASDAQ stock exchange under the ticker symbol AAPL. The company is a constituent of the top-four market indices, the NASDAQ 100, S&P 100, S&P 500 and Dow Jones Industrial Average.
Apple trading hours
Apple shares are traded on the NASDAQ stock exchange according to the regular trading session schedule (EST):
- Pre-market trading hours from 04:00 to 09:30
- Market hours from 09:30 to 16:00
- After-market hours from 16:00 to 20:00
Monday to Friday from 14:30 to 21:00
How to trade Apple CFDs?
An individual has two options when trading in the stock market. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, investing in Apple stock on the NASDAQ stock exchange, so you actually own a share in the company. This can be considered a long-term investment, as the individual is usually waiting for the price to rise over time.
Alternatively, they can trade a contract for difference (CFD) on a particular stock, and speculate on the price difference of the underlying asset, without actually owning the asset. A CFD is a financial contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade. You can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment or trade, as CFDs tend to be used within shorter time frames.
Trade Apple Inc - AAPL CFD
The key difference between trading Apple through a long position with a CFD and buying a security is the leverage that is employed. CFDs are traded on margin, which means that a trader can open larger positions with their capital.
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Trading on margin: Providing trading on margin (up to 5:1 for individual equities), Capital.com gives you access to the stock market with the help of CFDs.
Trading the difference: When trading an Apple CFD, you don’t buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Apple stock price. CFD trading is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with their objectives.
All-round trading analysis: The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.
Focus on safety: Captal.com puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows you to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.
Apple (AAPL) stock history
Apple is regarded a global leader in technology and for good reason. However, Apple stock performance was not always so bright and the AAPL share price history reflects this reality.
Apple Computer, Inc. was incorporated on January 3, 1977, after Wayne sold his share of the company back to the others for $800. The Apple II, the second model of Apple computer, introduced in January 1977, revolutionised the industry with the introduction of the first-ever colour graphics.
Apple, with the help of investors, grew and went public on December 12, 1980, at $22 per share, raising more capital than any Initial Public Offering (IPO) since Ford Motor Company. Four years later, in 1984 Apple launched its first personal computer to be sold without a programming language, and hence the successful Macintosh range was born.
Apple’s board of directors ousted Jobs from the company in 1985 only for him to return as CEO in 1997. At that time, Apple was on the verge of bankruptcy but Jobs had a turnaround plan, including securing a $150m investment from Microsoft to support Office products for the Mac.
Over the next decade, Apple excelled once again with the invention of the Mac OS X operating system, iPod, iPhone and iPad. Ten million devices were sold to the end of 2004, and Apple’s stock increased more than three-fold since the initial launch.
Apple’s stock price increased over the years and rose to $92.54 on January 9, 2007, which corresponds with the day that Jobs first introduced the concept of the iPhone. When the new phone was launched on June 1, shares were trading at $122.01.
Jobs left the company in 2011 - he died from cancer shortly after - and was replaced as CEO by former chief operating officer Tim Cook.
Apple stock was steadily rising and Apple’s valuation hit the coveted $1tr mark in 2018. However, sentiment quickly reversed as investors and analysts started to question if peak Apple stock performance had passed.
All concerns were confirmed in early 2019 when Apple issued its first profit warning in 16 years. The company said in January it expected total revenue to be $9bn less than prior estimates, partly due to poor performance in China. Shares in Apple had fallen from above $230 in 2018 to below $150.
In early 2020, the street was debating when Apple would become a $2tr company. Apple’s stock peaked at $327.85 before investors started questioning what impact the coronavirus would have not only on consumer demand worldwide but also on its supply chain. Apple depends on factories across China to manufacture its devices. Under a worst-case scenario, analysts predicted that 32 per cent of Apple’s entire business could be disrupted.
Still, investors believe the impact on Apple’s financials will be temporary, followed by a surge in demand once the coronavirus outbreak eases. Its results in October 2020 revealed total net sales of $274bn up 5% on the previous year and a net income of $57bn, up 3.6%.
Although Jobs founded Apple, he didn’t run the company in the beginning. It was only after returning to Apple – after leaving over power clashes with CEO John Sculley – that Jobs became CEO. It was initially supposed to be for an interim period, however Jobs ended up serving as CEO until his retirement.
As one of the global leaders in technology industry, Apple faces general competition from tech giants like Amazon, Facebook and Google. Apple also faces direct competition from Microsoft, with its competing operating system, Windows. Apple also faces competition from Google in the smartphone market, given that Apple’s iOS and Google’s Android compete as smartphone operating systems.
As with any equity, quarterly earnings announcements, as well as the financial performance of the wider stock market are two crucial factors to watch when deciding how Apple stock might perform. Something more specific to Apple is how sales affect the stock price. Apple’s stock price is affected by iPhone sales primarily – as this is the largest revenue generator for the company, but also iPad and Mac sales (which combined make up almost 20% of revenue). As well as this, the invention of new products is a major driver of Apple’s stock price. For example, when Apple announced the Apple Watch, the stock price rallied the following day.