Apple's 50th Anniversary Was April 1. Is the Tech Giant's Stock Worth Buying and Holding for Another 50 Years?

What a thrust it has been for Apple (NASDAQ: AAPL) and its shareholders implicit the years. The institution celebrated its 50th day connected April 1, evolving from an underdog successful the machine marketplace to arguably the world's astir salient consumer-facing concern today.

Long-term investors person besides made fortunes from Apple stock, which has returned implicit 97,000% since 1990, including dividends.

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Given Apple's $3.75 trillion marketplace cap, investors shouldn't expect aboriginal show to rival the past. That said, however overmuch tin investors number connected Apple banal implicit the adjacent 50 years?

Apple's roots are successful user electronics, but the iPhone, launched successful 2007, was the pivotal merchandise that made the institution the juggernaut it is now. Today, the iPhone is the astir fashionable smartphone successful the United States, with a 50% to 65% marketplace share, and it accounts for an estimated 32% of the planetary market.

Apple has masterfully leveraged the iPhone's popularity to physique a sprawling iOS ecosystem with respective competitory advantages.

Hardware and bundle integration means your iPhone works seamlessly with your Mac, MacBook, iPad, Apple Watch, oregon AirPods. That some gives users a amended experience, and makes it much achy to permission iOS with each instrumentality they use. Additionally, it opens up high-margin cross-selling for subscription services, royalties connected app downloads, and caller products.

There are present 2.5 cardinal progressive iOS devices worldwide, giving Apple a steadfast grip connected a monolithic lawsuit basal that astir companies could lone imagination of.

Electronic devices are becoming progressively cardinal to modern life, truthful the iOS ecosystem should person semipermanent staying power. Apple is besides inactive pushing retired caller hardware products. The caller MacBook Neo targets entry-level machine users, and the institution is reportedly processing AI glasses that would correspond a brand-new merchandise category.

Apple's remarkably businesslike proviso concatenation and merchandise integration assistance it make a 68% instrumentality connected invested capital. Operating that efficiently astatine Apple's size is however the institution generated much than $123 cardinal successful escaped currency travel implicit the past 4 quarters. Apple past uses that currency to bargain backmost banal to boost net per share, portion besides paying a increasing dividend to shareholders.