It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With a 3.5-inch display, 3G connectivity, 4GB of base storage, 8-hour battery life and a $499 starting price, the iPhone would quickly disrupt the mobile phone industry. The iPhone marked the point where Apple transformed from a PC maker (that had also had success with the iPod) to a consumer electronics company. It also marked the start of an era of massive growth for AAPL stock.

To put things in some perspective, Apple’s market capitalization in 2006 — the year before the iPhone went on sale — was about $73 billion. Today, even with AAPL stock down 22% since the start of the year, Apple’s market cap is nearly $2.3 trillion.

Fifteen years after its release, the iPhone still drives massive business for Apple. With AAPL stock down and the iPhone 14 due to be released in September, now is a good time to buy Apple stock. Even better considering the company has what could be its next game-changing product waiting in the wings.

The iPhone Is Still a Massive Revenue Driver

The days of massive growth in iPhone sales are over. The market has matured so, unlike 15 years ago, there is no mad rush by consumers to move from feature cell phones to a smartphone like the iPhone. However, the iPhone is still big business for Apple. In the last quarter, the company sold over $50 billion worth of them. Users still upgrade their phones (although the replacement cycle has grown longer) and 5G is driving many users to buy new iPhones.

In September, the company will release the iPhone 14 series. The company is reportedly expecting to move 220 million units this year.

It’s not just the direct revenue Apple gets from iPhone sales that investors should be watching. It’s the additional money coming into the company’s coffers courtesy of iPhone owns. In 2021, Apple CEO Tim Cook said there were over 1 billion iPhones in active use. Those iPhone owners are a huge part of app sales, Apple Music subscriptions and other services that brought in nearly $20 billion last quarter. Regardless of the number of iPhones Apple sells, that Services division revenue continues to flow. That is a big plus for the APPL stock ownership argument.

Apple Poised to Release New, Game-Changing Product

Another reason to buy AAPL stock now is its product pipeline. As I wrote back in [June], 2022 is expected to be a huge year for new Apple product releases. That has already begun with key launches like the all-new M2 MacBook Air. It will continue with the iPhone 14 series in September. There will be more, including a new Apple Watch version and expectations for everything from new AirPods to a new Mac Pro.

But the next big shoe to drop is looking like early next year. That’s when Apple is expected to launch its long-awaited AR headset. The company has already shown off a version to its board of directors. An AR headset would be the culmination of Apple’s strategy of building augmented reality that began in 2017 with the release of ARKit development software.

Apple’s AR headset could be the next iPod or iPhone, the must-have device that disrupts established players in the market. With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels.

Should You Buy AAPL Stock?

Apple is far from immune from the macroeconomic forces that have battered so may tech stocks in 2022. If you buy Apple stock now, there’s no guarantee you won’t see continued volatility.

However, if you’re in it for the long term, AAPL stock earns a “B” rating in Portfolio Grader. Ongoing demand for iPhones and the added revenue iPhone owners generate will continue to provide a solid foundation for Apple’s value. With the next big thing potentially around the corner, that only adds to the case for growth investors to buy AAPL stock now.

— Louis Navellier and the InvestorPlace Research Staff

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Source: Investor Place