2007: The iPhone That Changed Apple Forever

🔥 This Week’s Insights:

• Fed Rate Cut Watch

• Practice Problem of the Week: Apple iPhone Launch 2007

• Next Week’s Podcast: History of the Stock Market

WHAT THE MARKETS TAUGHT US THIS WEEK:
📊 The Fed’s Next Move: Rate Cuts on the Horizon?

This week, all eyes were on the weak U.S. jobs report, which came in below expectations.

With job growth slowing and economic data mixed, investors are now laser-focused on the Fed’s upcoming rate decision.

The big question?

Whether the central bank will cut rates to avoid a broader economic slowdown—and what that could mean for markets going forward​.

STOCK INVESTING MYTHBUSTERS:
💥 Myth: A higher stock price means a better company.

Reality: Stock price alone doesn’t indicate quality. Focus on the company’s fundamentals like earnings, growth and debt - not just the price tag.

 UNLOCK INVESTING SCHOOL:
💡The Story Behind Apple’s iPhone Launch: How It Changed Everything

Let’s go back to 2007. Apple was already famous for its sleek computers and revolutionary iPods, but nobody saw what was coming next.

I was just a university student back then—no extra cash for the first iPhone—but I remember watching Steve Jobs on TV, unveiling this sleek, futuristic gadget that combined a phone, an iPod, and a web browser.

I had a gut feeling this was something special.

And boy, was I right.

Little did I know that moment would reshape the tech world forever, turning Apple into the global powerhouse it is today.

And here's the thing: it wasn’t just a new phone. It was the beginning of a new way of living, working, and interacting with technology.

Let’s break it down.

Before the iPhone, phones were, well, pretty basic. You could call, send texts, and maybe snap a few grainy pictures if you were lucky.

But Jobs didn’t just want to improve the phone; he wanted to change the game entirely. He saw an opportunity to combine the mobile phone, the music player, and the internet into one seamless device.

And that's exactly what Apple did.

On January 9, 2007, at Macworld, Jobs introduced the world to the iPhone. “An iPod, a phone, and an internet communicator,” he said.

But instead of three devices, it was all wrapped up into one. That was mind-blowing back then.

Fast forward to today—Apple has sold over 2 billion iPhones globally, and the company’s stock has skyrocketed. Back then, Apple's stock price was around $12 (adjusted for stock splits).

Today? Apple is the first company to hit a $3 trillion market cap.

That’s some serious growth.

And it’s not just about the stock price. The iPhone also changed how businesses work.

Entire industries shifted.

Social media became more accessible, apps were born, and the smartphone ecosystem exploded.

We could argue that none of this would’ve happened without Apple’s bold innovation.

Looking back, it’s crazy to think how much the iPhone has influenced the way we live.

I’ve since become an Apple user, and even more importantly—an Apple shareholder. I had a hunch, but I didn’t quite grasp the magnitude of what was coming back then.

Today, as an investor, you can look at the iPhone as a symbol of what innovation can do.

Apple took a risk, and it paid off in ways nobody could’ve predicted.

📝 Practice Problems: Let’s Apply This!

1. Look up Apple’s stock price today. Compare it to what it was in January 2007. How much has it grown percentage-wise?
   

2. Apple has continued to innovate with products like the Apple Watch, AirPods, and iPads. How do you think these products impacted Apple’s stock performance? Look up key product launch dates and see if there were any significant stock price changes following these launches.
   

3. Apple became the first company to hit a $3 trillion market cap. Look up Apple’s current market cap and find the year when it first crossed the $1 trillion mark. What do you think has driven this explosive growth?
   

4. Pick a year after the iPhone launch, and look at Apple's stock performance for that year. Did it rise steadily, or were there dips? What might have caused those fluctuations?
   

5. Look at other tech stocks from 2007 to now. How does Apple's stock growth compare to other big tech companies like Microsoft or Google?

💬 Learner Hint: 

Recently, Apple’s stock hasn’t surged as much after product launches, like with the iPhone 15. This is where critical thinking and analysis come in—understanding market expectations and the competitive landscape is key. Don’t just rely on the hype; consider other market info to make smarter investing decisions. Use tools like Yahoo Finance to track performance and compare competitors.

✨ Sharpen your finance knowledge and skills by tackling the challenge!

NEW THIS MONDAY ON THE UNLOCK INVESTING PODCAST:
🎙️ The History of the Stock Market: From Trading Posts to Global Exchanges

From a buttonwood tree to global power—next Monday, we’re diving into the wild history of the stock market. Don’t miss this rapid-fire breakdown of how it all began!

Subscribe on Apple Podcasts, Spotify, Amazon Music or iHeartRadio!

Thanks for reading.

Keep learning and see you next week 👋

Important Disclaimer: The content in this newsletter is for educational purposes only and does not constitute financial advice. All information provided is based on my personal opinions and experiences and should not be taken as a recommendation to buy, sell, or hold any financial instruments. Investing involves risks, including the potential loss of capital, and you should always conduct your own research or consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.