Discover the best ways to buy Apple stock and maximize your investment. Follow our simple guide!

Are you considering investing in one of the World’s leading tech companies? Apple Inc. is a renowned technology giant, recognized globally and valued at over $2 trillion. Investing in Apple stocks and shares may prove to be a wise decision due to the company’s history of innovation, consistent financial growth, and a loyal customer base. In this article, we’ll guide you through the process of purchasing Apple stocks and shares, whether you’re an experienced investor or a newcomer. So, continue reading to learn more about the buying process, and maximizing your potential returns.

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How to buy Apple shares

Our view: The next generation of online trading platform means you can get setup & buy Apple shares in as little as 5 minutes!

  1. Select a share platform - See our top platform picks
  2. Open your share account - To do this, you will need your bank details and national insurance number
  3. Fund your account - You will need to fund your a/c with a debit or credit card or bank transfer
  4. Search for the share using the Apple stock code - Type in the AAPL stock code into the search box
  5. Check out the latest info and price for the selected share - Some platforms offer free research and analysis
  6. Buy the share - Nice and easy!
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Trading news for Apple

Is now a good time to buy Apple shares?

4 Tips for trading Apple stock:

  1. Do your research – Before buying or selling Apple stock, research the company’s financial performance and other factors affecting its stock price.
  2. Set a strategy – Have a clear plan for buying and selling Apple stock based on your research and your risk tolerance.
  3. Use stop-loss orders – Use stop-loss orders to limit your losses if the stock price falls below a certain level.
  4. Diversify your portfolio – Don’t put all your money into Apple stock. Diversify your portfolio to reduce your risk.

How To Buy Apple (AAPL) Stocks And Shares In 2023

This article details the advantages and disadvantages of investing in Apple in 2023, as well as how to invest in Apple stock via direct purchase, through an investment fund, spread betting, and CFDs.

We will also take a look at Apple’s current stock price and will consider what to look for when assessing whether or not the company’s share price is likely to increase or decrease in the future.

  • What are the benefits of investing in Apple?

The potential for high returns

While there are never any guarantees in trading and investing, some companies are more readily able to demonstrate their ability to deliver a return on investment, and Apple is an excellent example of this.

For instance, within a period of five years, Apple has been able to grow from around 46 USD per share in mid-2018 to around 165.21 USD per share in 2023 (as of writing on April 17th 2023). On this basis, Apple has demonstrated that it is able to offer the potential for high returns on a consistent basis, year-on-year. But remember, past performance doesn’t guarantee future returns, and you should always base your investment decisions on current financial and economic factors.

Dividends

In addition to the potential benefits investors can enjoy from share price movement, they will also receive dividends via an Apple investment. This is a benefit for long-term investors, as they can earn a small percentage of the profits made by Apple for a given quarter, which serves as a reason to retain one’s investment in the company.

Diversification

Apple operates within a range of different industries, including the smartphone industry and the computer industry. Since the company’s revenue streams are spread out across a range of different niches, this helps to reduce the overall risk of investment. However, there is always a risk involved with investing and share prices can always go down as well as up, so keep this in mind.

Brand Value

Apple has often topped various lists as the top brand in the world in regard to value; however, in 2023, it did lose its first-place ranking due to losing 57.6 billion USD in value. Amazon has now become the top ranking in this particular list, having lost 51 billion USD (so the gap between the two companies is narrow).

Moving away from stats, the importance of brand value extends to its recognisability worldwide, together with shareholder and investor confidence. As mentioned earlier, Apple has been able to earn profits year-on-year consistently and has consistently invested time and money into strengthening its brand value.

What are the risks of investing in Apple?

Market volatility 

The stock market is generally volatile, and with a company like Apple that is worth billions, it can lose capital very easily, meaning that shareholders can lose on their investments quite quickly. Because Apple is such a well-known brand, negative media attention can lead to swings in its share price even if its financial performance does not change.

Stock trading is all about timing, as well as making decisions with current political and economic changes in mind. However, it’s generally safer to buy investments that you think are going to perform well over the long term, as opposed to looking to make quick, short-term gains on fluctuating stock.

Competition

In the benefits section of this article, we mentioned that diversification was one of Apple’s strengths. While this is true, it also opens the company up to the downside of having a vast amount of competitors.

For instance, in the smartphone industry, they must compete with brands such as Samsung, Google, and Sony. In the computer industry, they must compete with even more competitors such as Windows, HP, Asus, Samsung, Dell, Lenovo etc.

This is tough for the company because it means they have to focus on many different external influences and factors, such as reacting to the pressure received from competitors who lower their prices, the danger of losing their market share in certain industries, and so on.

Apple initially expressed a commitment to never lowering their prices when they first started producing products such as the iPod, the iPad, and the iPhone (a commitment they have largely kept). However, the company has started producing products within the last ten years, which clearly represents the company bowing to external market pressure.

For instance, the introduction of cheaper products, such as the iPhone SE, and earlier products, such as the iPhone 5C.

One could argue this is an attempt at trying to offer brands at a range of different price levels in order to remain competitive, but the company did originally commit to being the most expensive brand on the basis of being the highest quality provider.

Dependence on key products

Since Apple has a heavy reliance on the success of certain key products, such as the iPhone and the Apple Mac, any future challenges in these industries could dramatically affect the company since these products represent a large portion of its revenue streams. This, in turn, could impact the company’s profitability and also its stock price.

Regulatory risks

Apple is an international brand that operates in a range of different territories across the world. As a result, it is subject to many different laws and regulations. Changes in laws and regulations could negatively affect the company since it could force them to take actions that could impact its revenue and profitability, which would inevitably affect its stock price.

How to buy Apple shares within an investment fund

Investors simply need to open up an online brokerage account and then search for AAPL. From there, investors can choose to either invest in Apple directly or invest in it via an investment fund.

Some examples of mutual funds that contain Apple stocks are as follows:

  • Vanguard Total Stock Market Index Fund
  • Vanguard 500 Index Fund
  • SPDR S&P 500 ETF Trust
  • Fidelity 500 Index Fund

It’s important to note that fund managers rebalance and reallocate investment funds on a regular basis, so although Apple shares may be held currently, they may not be in the future.

You can check the underlying investments of a particular ETF, unit trust, OEIC, or any other kind of investment fund by looking at the fund fact sheet.

You can invest in investment funds through an investment platform in the same way as with Apple shares directly.

How can I use spread betting or CFDs to trade Apple stock?

Investors who choose to invest in Apple stocks via spread betting or CFDs should again search for AAPL and then select a spread bet or CFD that suits their investment goals and then proceed to make their investment.

One key thing to consider when investing in Apple is how capital gains tax will affect it. If you opt to invest via spread betting, you can completely avoid this tax. If you choose instead to invest via CFDs, you can choose to offset any profits you make against any potential losses you might make for tax reasons.

By investing in an ISA or a SIPP, you can also avoid capital gains tax.

Current and forecasted share price for Apple

As mentioned earlier, the current Apple share price is around 165.21 USD per share (as of writing on 17/04/2023).

Will the Apple share price increase?

Whether the price of Apple’s shares will rise depends on many things, including the state of the US and global economy, political happenings, and how well the company is doing.

We can’t say for sure if Apple’s shares will be worth more in the future. As an investor, you need to look at different things to make a good decision. This includes how much money the company might make and any extra money it could give its shareholders (dividends).

Here are some simple tips on what to look at:

  • Check the company’s financial reports to see if it’s making good profits, isn’t too much in debt, and has a healthy cash flow. If the company’s profits are going up and it doesn’t have too much debt, that’s a good sign.
  • Try to understand key ratios like P/E (Price-to-Earnings), P/B (Price-to-Book), and Dividend Yield. These can help you figure out if the shares are currently priced too high or too low.
  • Know where the company stands compared to others in the same industry. If it has a strong position, it might grow more in the future.
  • Look at the company’s leadership. If they have a history of making good decisions, they can help the company succeed.
  • Keep an eye on trends in the industry and predictions for future growth. If the company is expected to make more money in the future, the price of its shares could go up.

Some analysts expect the Apple stock price to reach as high as 205 USD per share within the next 12 months, within a median target of around 173.50 per share and a potential low of 116 USD per share.

Yes, and they are paid every quarter. At the time of writing (2/5/2023), the dividend yield was 0.61%.

 Apple has been able to produce steady dividend payments over the course of the last decade.

This will depend on your personal tax position. 

Investment in Apple stocks can lead to investors having to deal with taxes such as capital gains tax, which will be attributed to any profits that are made from the sale of Apple stock.

You could also be subject to income tax on dividends if you hold Apple shares outside a tax-efficient wrapper, such as an ISA.

If you are unclear, you should seek independent tax advice.

 The P/E ratio (Price Earnings Ratio) is directly affected by investor demand and current market conditions. The P/E ratio as of writing is 28.05 (April 16th 2023).

Apple has a goal of making the majority of its products carbon neutral by the year 2030, with a continual goal of ensuring that it produces products without ‘taking from the earth’. 

Moreover, the company appears to place importance on putting its employees first by prioritising the improvement of work environments, inclusivity, and diversity among its workforce.

Finally, Apple purports to believe in being transparent and accountable at every level within the company and has structured itself in a manner that reportedly helps it to be more effective at decision-making, to remain informed, and to act with principled actions.

Yes, and the company has been the subject of criticism in this area in the past.

For instance, the company has been at the centre of controversy regarding its labour practices, supply chain management, and effect on carbon emissions. However, as mentioned earlier, the company is continually working on efforts to improve in these areas.

How to select a share trading platform?

Trading platform services offered vary widely, and so do the costs.

5 things to consider when buying Apple:

1. How do you want to trade?

There are different ways to trade shares online:

a. Short-term trading – Spread betting & CFDs

Are you looking to take advantage of short-term opportunities in the market?

With derivatives trading you can use products such as CFDs and spread bets to speculate on Apple’s share price increasing or decreasing without having to take direct ownership of the shares themselves.

CFDs (Contracts For Difference) and spread betting are leveraged products, which means you can gain full exposure to company shares while only putting down a small deposit. While this magnifies possible profits, it does the same for losses.

CFDs & spread bets are popular among short-term traders as profits and losses are realised immediately – making opening and closing trades faster. However, this doesn’t mean you can’t use them for longer-term positions. You’d need to consider the costs of maintaining a position – such as overnight funding – and the bet duration, as spread bets have fixed terms.

They enable you to buy and sell shares online without owning the underlying asset. This has tax benefits and means you can trade both rising and falling markets (Tax laws are subject to change).

b. Long-term trading – Investing in shares

Are you looking to take a longer-term position in Apple shares?

Share dealing services enables you to invest in company shares with a view to selling them for a profit at a later date. When you buy shares in Apple you become a part owner of that Company and gain shareholder rights including any income that is paid as dividends.

Different share-dealing services have different charging structures. Some platforms offer commission-free share dealing, but most operate on a fixed fee per trade, usually reducing this fee if you carry out more than a certain number of monthly trades.

Profits you make on share trading capital gains and dividends may be subject to tax at your rate. Taxation can be mitigated by trading within an ISA or Self Invested Personal Pension account.

2. Do you want to do a lot of trading?

Active investors will want to look for a platform that offers the lowest fees for volume trades.

If you are going to trade stock regularly, most trading platforms will offer lower prices based on volume.

3. How easy is this trading platform to use: what kind of tools and customer service does it offer?

How easy is the platform to buy and sell shares for new traders/investors?

Platform functionality is becoming the key battleground in persuading traders which platform to go for.

Mobile app features are also vital in offering traders alerts and buy/sell signals whilst on the move.

These are often the criteria that count most highly with users, so research and read the reviews.

Many investors are prepared to pay more fees for a platform that offers handy apps and services.

4. Types of trading accounts for long-term trading?

Some trading platforms offer general share trading accounts, ISA accounts, and Self Invested Personal Pension Accounts, which offer tax-free trading benefits (no tax on dividends or capital gains tax on realised profit).

Trader accounts offering ISA, and SIPP includes Interactive Investor, AJ Bell, and Hargreaves Lansdown.

5. Do you want to trade just in shares, funds, or shares & funds?

If you are also interested in investing or trading in funds, this may determine who you go with.

You must check with the platform provider if you are interested in ETFs, Investment Trusts, Open Ended Investment Companies (OEICs) or Unit Trusts. E.g. Some platforms only offer a limited number of collectives, such as OEICs.

The charging structure for funds held on the platform will vary. Over time the impact of such charges can be significant. Check the platform charging structure carefully.

About Apple

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

IMPORTANT: No news, feature article or comment should be seen as a personal investment recommendation. Before deciding to invest, you should ensure that you are familiar with the risks associated with a particular plan. If you are unsure of the suitability of a particular product, both in respect of its objectives and risk profile, you should seek independent financial advice. The value of shares, ETFs and ETCs, bought through a share dealing account, stocks and shares ISA, or a SIPP can fall and rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 67%-81% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how spread bets and CFDs work and whether you can afford to risk losing your money. Professional clients can lose more than they deposit. All trading involves risk. Tax treatment of ISAs depends on your circumstances and is based on current law, which may be subject to change in the future. ISA transfer charges may apply; please check with your provider.