Should one opt for purchasing the latest iPhone 17, or is it more profitable to invest in Apple stocks instead? Which route offers the greater returns?
In the world of technology, the latest iPhone 16 release is often met with excitement and anticipation. However, a closer look at the financial side of things suggests that the smartest buy might not be the iPhone 16 itself, but investing in Apple stock.
Since its launch in 2007, the base model price of the iPhone has steadily increased. From $499 (Dh1,830) in 2007 to $999 (Dh3,670) in 2017, 2024, and now expected to be $999 (Dh3,670) again in 2025 with the arrival of the iPhone 17.
Meanwhile, Apple stock has been a wealth-builder over the years. A single decision to buy Apple shares instead of an iPhone 16 in 2007 would today be worth nearly Dh100,000. This is due in part to the two stock splits Apple underwent - 7-for-1 in 2014 and 4-for-1 in 2020, which increased the number of shares outstanding but decreased the price per share.
The resale value of the iPhone, on the other hand, tends to drop significantly after each new release. If someone had bought Apple stock instead of the first iPhone 16, their initial outlay of $499 (Dh1,830) would be worth approximately Dh98,600 in September 2025.
The choice between instant gratification (flexing the latest iPhone 16) and long-term gains (quietly watching money grow into six figures) is presented when the iPhone 17 arrives. However, it's important to note that this article does not advise ditching the iPhone 16, but rather recognizing the difference between a consumption purchase and an investment purchase.
On the day of the iPhone 17 release on September 9, 2025, the Apple stock price reacted skeptically and fell by about 1.4% during the presentation, indicating a negative market response rather than a specific opening price on that day.
In conclusion, while the iPhone 16 continues to deliver utility and status, it loses value fast. On the other hand, Apple stock builds wealth and compounds in value over time. The glowing Apple Store might not be the only place to make a smart buy - the stock ticker outside it could offer long-term gains.
