Apple's 50th Anniversary Was April 1. Is the Tech Giant's Stock Worth Buying and Holding for Another 50 Years?
Key Points
The iPhone was a pivotal product that helped Apple turn iOS into arguably the world's best business.
Apple's announced and rumored hardware projects are encouraging for the future.
Meanwhile, Apple's size and financial efficiency give the stock a very high floor moving forward.
- 10 stocks we like better than Apple ›
What a ride it has been for Apple (NASDAQ: AAPL) and its shareholders over the years. The company celebrated its 50th anniversary on April 1, evolving from an underdog in the computer market to arguably the world's most prominent consumer-facing business today.
Long-term investors have also made fortunes from Apple stock, which has returned over 97,000% since 1990, including dividends.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Given Apple's $3.75 trillion market cap, investors shouldn't anticipate future performance to rival the past. That said, how much can investors count on Apple stock over the next 50 years?
Image source: The Motley Fool.
The iOS ecosystem is a durable competitive moat
Apple's roots are in consumer electronics, but the iPhone, launched in 2007, was the pivotal product that made the company the juggernaut it is now. Today, the iPhone is the most popular smartphone in the United States, with a 50% to 65% market share, and it accounts for an estimated 32% of the global market.
Apple has masterfully leveraged the iPhone's popularity to build a sprawling iOS ecosystem with several competitive advantages.
Hardware and software integration means your iPhone works seamlessly with your Mac, MacBook, iPad, Apple Watch, or AirPods. That both gives users a better experience, and makes it more painful to leave iOS with every device they use. Additionally, it opens up high-margin cross-selling for subscription services, royalties on app downloads, and new products.
There are now 2.5 billion active iOS devices worldwide, giving Apple a firm grip on a massive customer base that most companies could only dream of.
Why Apple is still a no-brainer to buy and hold
Electronic devices are becoming increasingly central to modern life, so the iOS ecosystem should have long-term staying power. Apple is also still pushing out new hardware products. The new MacBook Neo targets entry-level computer users, and the company is reportedly developing AI glasses that would represent a brand-new product category.
Apple's remarkably efficient supply chain and product integration help it generate a 68% return on invested capital. Operating that efficiently at Apple's size is how the company generated more than $123 billion in free cash flow over the past four quarters. Apple then uses that cash to buy back stock to boost earnings per share, while also paying a growing dividend to shareholders.
It's hard to see Apple going away anytime soon, barring some unforeseen collapse of the iOS ecosystem. Apple's focus on new hardware will likely bode well for its future, too. Apple is too large at this point to realistically expect the stock to make you rich overnight, but it's still a no-brainer to buy and hold for the foreseeable future.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,066!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,087,496!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 4, 2026.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and is short shares of Apple. The Motley Fool has a disclosure policy.
Recommended Articles
