[Mag 7 Stock Analysis Part.1] Apple (AAPL) Stock Price History: From the Brink of Bankruptcy to a Global Market Cap Empire

 The second protagonist in our Magnificent 7 (Mag 7) stock analysis series is the global icon of innovation that needs no introduction: Apple (Ticker: AAPL).

While investors often jokingly say, "Apple is a religion," a look at Apple's historical stock chart reveals that its path was never entirely smooth. To successfully manage a portfolio and finalize an upcoming cash liquidation strategy, we must review the price waves this company—considered one of the greatest in human history—rode to build its massive empire. Let's take a deep dive into the turbulent history of Apple's stock price, from facing near-bankruptcy to battling for the #1 spot in global market capitalization.

1. Innovation, the Fall, and the Return of Steve Jobs (1980s ~ 1990s)

In December 1980, Apple made a spectacular debut on the NASDAQ at $22 per share (pre-split). While it received massive market expectations due to the massive success of the Apple II, the subsequent stock trend was nothing short of a dark age.

• The Ousting of the Founder and a Long Slump: In 1985, an unprecedented event occurred: founder Steve Jobs was ousted from his own company following an internal power struggle. Afterward, Apple poured out numerous products, but they were largely ignored by the market. The company continuously lost PC market share, overpowered by Microsoft's Windows operating system. In the mid-to-late 1990s, Apple's stock price literally hit rock bottom, pushed to the brink of bankruptcy—reportedly just 90 days away from insolvency.

• 1997, The Beginning of a Legend: The card the board chose to save the collapsing Apple was the return of Steve Jobs. Immediately upon his return, Jobs simplified the convoluted product lineup and miraculously turned the company profitable with the massive success of the iMac in 1998. From this point on, Apple's stock halted its long downward trend and began laying the groundwork for a massive reversal.

2. The iPod and iPhone Revolution: The Era of Massive Surges (2000s ~ Early 2010s)

The true quantum leap for Apple's stock began when it expanded its ecosystem beyond PCs (Macs) and into mobile devices.

• The Combination of iPod and iTunes: Released in 2001, the iPod changed the paradigm of the music industry. The powerful ecosystem combining hardware (iPod) and software (iTunes) brought enormous cash flow to Apple, and the stock price gradually steepened its upward curve.

• The 2007 iPhone Launch Changes the World: "Today, Apple is going to reinvent the phone." With this 2007 presentation by Steve Jobs, Apple's stock entered a completely new trajectory. The explosive sales of the iPhone, which opened the smartphone era, generated earnings surprises every single quarter. Although the stock briefly stumbled during the 2008 global financial crisis, it subsequently unleashed an explosive rally, finally claiming the #1 spot in global market capitalization in 2011.

3. The Tim Cook Era: Beyond Hardware to a 'Services Empire' (Mid-2010s ~ Present)

Following the passing of Steve Jobs in 2011, the market worried that Apple's innovation had died with him. In fact, in the mid-2010s, as the growth rate of iPhone sales slowed, the stock suffered by being trapped in a box range for an extended period. However, the new leader, Tim Cook, transformed Apple into an even more solid and highly profitable 'empire.'

• Explosive Growth in Services Revenue: Leveraging an installed base of billions of active Apple devices worldwide, Tim Cook maximized profits in the services sector, including the App Store, Apple Music, Apple Pay, and iCloud. As services revenue hedged against the volatility of hardware sales, Apple's stock experienced a significant re-rating.

• The Ultimate King of Shareholder Returns: Astronomical share buybacks and dividend increases, backed by massive free cash flow (FCF), became the primary contributors to firmly supporting Apple's stock price. Earning the title of "Warren Buffett's favorite stock," Apple successively broke the dream market cap milestones of $1 trillion in 2018, $2 trillion in 2020, and $3 trillion in 2022, reigning as the largest company in history.

💡 Summary & Takeaways

• 1980s~1990s: Post-IPO ousting of Steve Jobs, near-bankruptcy, and his dramatic return.

• 2000s~Early 2010s: Dominating the mobile ecosystem with the iPod and iPhone revolution, leading to explosive stock growth.

• Mid-2010s~Present: Maximization of services revenue and powerful shareholder returns under Tim Cook, surpassing a $3 trillion market cap.

(To be continued in Part.2: 'Apple's Future Outlook and Investment Strategy')