How investors enriched by Apple can give back to Apple

A modest suggestion from friend-of-the-blog Paul Lane:

Good morning, Philip

Like most of your subscribers I have owned shares in Apple for many years. It is my largest investment and (fingers crossed) will continue to handsomely fund my retirement.

In return, I support Apple in my own way by…

    • always buying the latest iPhone and iPad for myself and my wife
    • ditto for the Apple Watch
    • regularly updating our iMacs and laptops
    • buying Apple Care
    • subscribing to Apple One
    • etc.

The impact on Apple of these actions may be minuscule, but I feel it’s the least I can do. As a bonus, my wife and I get to own and enjoy the latest Apple products. In addition, by showing off our new acquisitions to friends and colleagues, we’ve probably helped Apple make some extra sales.

Just as importantly, I find a way to sell our year-old iPhones. They always command prices that substantially offset the cost of the new ones. I have done this with a dozen iPhones since our original iPhone 3GS, which means I have made a non-trivial contribution towards the iPhone’s growing installed base. Same with various iPads and Watches.

I would like to encourage my fellow Apple 3.0 investors to consider doing the same. Why hold on to your iPhones or iPads for years? You can afford to buy the new ones with the generous returns of your Apple investment. Grow the installed base and act as a mobile showroom with Apple’s latest and greatest in your hands and on your wrist.

My take: Is there another company that inspires such loyalty in its investors?

20 Comments

  1. Miguel Ancira said:
    Totally agree.
    As long as we are shareholders, will continue to use iTunes instead of Spotify, and will be first adopters with pretty much every new product.

    6
    August 16, 2021
  2. Bart Yee said:
    Yep, already bought two new iPads, AirPods Pro, all with AppleCare and have an AppleTV 4K on order.

    1
    August 16, 2021
  3. Dave Ryder said:
    I’m doing my part too!
    Years back I joked to my family that I was taking money out of one pocket and getting back in my other pocket 🙂

    4
    August 16, 2021
  4. Fred Stein said:
    Great idea, thanks.

    May I suggest another?

    We start an on-line petition opposing the current proposed legislation, with the goal to reinforce that we want to keep the walled garden. We don’t want added risks and complexity.

    Clearly this idea needs expertise I lack and a much bigger forum.

    11
    August 16, 2021
  5. Dan Scropos said:
    I became an Apple investor *because* I found myself doing this.

    9
    August 16, 2021
  6. Rick Povich said:
    I’ve been doing that for about ten years. I get a dividend check but I will still “reinvest” in new equipment. A good idea, for sure.

    2
    August 16, 2021
  7. Daniel Epstein said:
    Maybe Apple should start an investors upgrade program! It would be easy for me to spend more on Apple’s products than the amount of Dividend I receive per year if I upgraded every part of my Apple ecosystem every year. Just getting a new Mac Pro would be a lot of stock to own.

    1
    August 16, 2021
  8. Gregg Thurman said:
    Whiplash. Head fake. Whatever.

    This morning AAPL Opened at its intraday low (so far) and promptly set a new all-time high. I normally watch AAPL’s Opening prints for an hour, maybe two, before jumping in. Seeing AAPL set a new all-time high right out of the gate I purchase AUG 20 $148/$149 Call Spreads @ 68¢, only to watch AAPL almost immediately set a new intraday low.

    Thankfully I didn’t have the courage of my convictions and only invested half of my strategy’s recommended amount. With these contracts selling for 52¢ I ordered more. Currently, the Bid/Ask midpoint is 53¢. Successfully bought my basis will lower to 60¢ per contract. ROI for this week with the new order (should AAPL Close above $149 on Friday) will be ~63%. Fingers crossed.

    UPDATE: 2nd Order filled.

    1
    August 16, 2021
    • Gregg Thurman said:
      And still, AAPL goes lower. Should have waited my usual hour or so before acting.

      2
      August 16, 2021
      • Daniel Epstein said:
        Whiplash is the right term . And just checking the stock price this afternoon it has recovered to over 150. Those shareholders must be buying a lot of phones today!

        0
        August 16, 2021
  9. Kirk DeBernardi said:
    I remember a number of years back, not too long after Steve had passed and Tim Cook took the reins at Apple, I attended a shareholder meeting (at the Infinite Loop campus) where a shareholder stood up and declared his great fortune for having invested in Apple, thanked Cook and his entire workforce then expressed a compelling desire to somehow give back to the company for how owning AAPL had blessed him and his family. He felt an indebtedness that also seemed palatable to most others in that small room — yours truly included.

    Cook looked at the ground, paused for a brief moment, and replied simply, “I think if you could be an evangelist for the company and its products, that would be the best thing everyone could participate in.” — or words to that effect.

    I think that not only do most all Apple 3.0 subscribers align with this statement, so does most of Apple’s IB.

    Buying all the bright ‘n shiny toys is just a given — 😉 Been doing that for years.

    2
    August 16, 2021
    • Jerry Doyle said:
      @Kirk DeBernardi: I remember that question, too, brother Kirk. It blew me away. I got excited wanting to know how Tim would respond. I remember leaning forward in my chair to see what his answer would be. Yes, he did pause before responding. That pause just added more buzz in the room, even drama as to what words flowed from his lips. Your answer is very much what I remember Tim saying. I found that response excellent. You see, if we spread the Apple gospel, then we are spreading the good news of a company that shows unparalleled leadership in possessing the elements of greatness, combined with goodness, more than any other company in history.

      1
      August 16, 2021
  10. Gregg Thurman said:
    Buying all the bright ‘n shiny toys is just a given — Been doing that for years.

    Since 1987. Mac Plus, Imagewriter II

    1
    August 16, 2021
  11. David Emery said:
    I guess I have a different take. What I expect from Apple are superior products, and in exchange I’ll pay a premium price for them. But that does not mean I feel any obligation to gratuitously send them $ for something that I don’t necessarily need. Part of my measure for ‘superior’ is extended (compared to competitor) product lifetimes. I’m using a ’14 laptop becuase my ’15 laptop is getting a new battery. The successors have not appealed to me, I hope the new Mx Macbook Pro 15″/16″ is compelling. I like my M1 Mini, but it’s frustrating to have a lot of external drives that won’t work with it. (FW800 and Thunderbolt 2).

    1
    August 16, 2021
    • David Drinkwater said:
      I agree with this philosophy. When I need or really want something new, it will be Apple. But it won’t be until I need or really want it. My current laptop is a MacBook Pro (13-inch, 2016, Four Thunderbolt 3 Ports). I upgraded to this because I was tired of the weight of the 15″ that preceded it. (Imagine how nice it was to get out of the 17″!) I can actually comfortably travel with this and my office-enforced Dell POS.

      I think a 14″ MacBook Pro with M-series chip will be very tempting.
      If there is ~10″ iPad with a smaller bezel, that will be tempting, too.

      One way to stay wealthy is to not buy things that you do not need. But in the end, I send a lot of money elsewhere. Corporations are not people. They really don’t need our help.

      0
      August 16, 2021
  12. John Konopka said:
    Not only do I buy my own computers, I buy new ones for my siblings, kids and my mom.

    And I had an Apple logo sticker on the back of my Prius. Now that we have a new Prius I have to find a sticker for it.

    I sometimes wear a hoodie with a picture of Clarus the dog-cow. Kids just think it’s cute. Sometimes people my age smile in recognition.

    https://en.wikipedia.org/wiki/Dogcow

    0
    August 16, 2021
  13. Bart Yee said:
    Don’t some Apple products still come with an Apple decal or sticker? Problem is, many in the world still believe that owning an Apple product or showing the logo or advertising it is akin to bragging or a sign of largesse in spending and consumption.

    Then the haters pull out all the old, tired tropes “too much money, expensive, poor value, overpriced, not smart enough, techie enough, frugal enough, only for young teens or old people, sheeple, so/too loyal they’ll buy anything Apple, Apple is a niche player, Android is overwhelmingly the most popular choice, Apple has gotten too big to ever grow again, there’s no innovation, never first, so what if they have the best/fastest custom silicon – specs aren’t everything these days, notch, chin, too many colors, not enough choice, too many choices, ugly Watch, I can buy a copy for less/third/half the price that functions the same, extended/updated iOS support (to now 5-6 years) is overrated, I’ll just buy a new phone every 2-3 years if I want the latest Android OS, Apple will never dominate, Apple is too powerful, too dominating, people need more choice than Apple allows, Apple makes too much money, is too successful, somehow Apple shouldn’t be able to make that much money, etc. etc.”

    Chime in with yours. Oh yeah, Apple is doomed.

    1
    August 16, 2021
    • Kirk DeBernardi said:
      @ Bart Yee —

      “I think subconsciously people are remarkably discerning. I think that they can sense care.”
      — Jonathan Ive

      …and they will pay for that sense of truly caring.

      1
      August 16, 2021

Leave a Reply