Apple (AAPL ) has been gaining a lot of attention over the past few years with its revolutionary products and enormous cash pile, but the company definitely has hit a few bumps along the way. In 1997, the company saw one of its worst days ever when reports were released that Microsoft (MSFT ) was helping the struggling company with its shortage of cash – Apple’s cash now accounts for nearly 10% of all corporate cash. Over the years, Apple has grown into the largest U.S. company by market capitalization. In 1998, Apple released its iMac G3, which was the beginning of its turnaround. Below are four major product releases and how the company’s stock price reacted.
See Also: The Complete History of Apple
August 1998: The iMac G3 Is Launched
The iMac G3 was released on August 15, 1998. When the market re-opened on Monday, August 17 the stock rose 3.56%, but AAPL’s stock declined 14% during the next month. Regardless of the stock price decline and criticism about the new product, the iMac G3 was the primary cause of Apple’s turnaround.
The product was known for its bright colors and was in production until 2012.
In 1998, Steve Jobs announced the launch of Apple’s iMac G3 at this presentation. Below is a flashback of this revolutionary product.
October 2001: Apple Releases First iPod
The first iPod was released on October 23, 2001. The new product was a revolutionary invention for the music world, but its release caused Apple’s stock price to dip 2.71% the first day and 5.57% the following day. Apple’s stock price took almost a month to rebound.
The iPod was released just eight months after Apple introduced iTunes. Since the release of its original iPod, Apple has released over 20 other versions of the music player. Until the iPhone was released, this product was Apple’s largest revenue stream.
In 2001, Steve Jobs revealed the iPod to the world at a casual Apple music event. Jobs noted that this new product had great potential since it would be the first of its kind.
June 2007: The First iPhone is Released
The first iPhone was revealed in January 2007 and was released on June 29, 2007. The day of its release, Apple’s stock rose 1.23% and surged 16% within the next month. Steve Jobs reported that he hoped to sell 10 million iPhones in 2008. Analysts and investors were skeptical, but Apple ended up selling 13.7 million iPhones in 2008.
In this 2007 presentation, Steve Jobs introduces the first iPhone – a phone that would change the industry forever. Jobs overviews the different features of the phone, which combined a phone, iPod and an internet device.
April 2010: Apple Releases the First iPad
On April 3, 2010 Apple released its first iPad. The company’s stock price had no major reaction when the market opened on Monday, April 5, but its stock price rose 13% by the end of the month. Although the stock price did well the month of its iPod release, the increase was partially due to better than expected earnings released at the end of the month.
Since the release of Apple’s original iPad, there have been four other iPads released including the iPad Mini.
In this 2010 presentation, Steve Jobs revealed the very first iPad – a product that would combine the iPhone and a laptop. Jobs shows the world its very first tablet that would be the replacement for many traditional laptops.
September 9, 2014: The iPhone 6 & iWatch are Launched
The iPhone 6, iPhone 6 Plus and iWatch were launched on September 9 and then later released on September 19. During the first weekend, Apple sold 10 million units of its iPhone – more than any other iPhone in the past.
Despite the enormous amount of sales, the stock suffered after reports that the phone was prone to bending.
Below is the video coverage from the iPhone event which was held on September 9 and hosted by Apple’s CEO Tim Cook.
The Bottom Line
Each of these products have not only been revolutionary for Apple, but for the entire industry. Apple’s stock price has not always reacted well to these products, but all of the products mentioned had a major positive impact on the company in the long run.
For more information on Apple’s earnings, be sure to check out 5 Charts to Put Apple’s Earnings in Perspective.