Is Apple Stock Your Ticket to Becoming a Millionaire?

Key PointsApple's monster success has stemmed from its innovative products and services that remain extremely popular.
Given the company’s huge revenue base, it likely will no longer register rapid growth in the years ahead.
Apple shares trade at an expensive valuation, which limits upside for investors.
- 10 stocks we like better than Apple ›
Apple's monster success has stemmed from its innovative products and services that remain extremely popular.
Given the company’s huge revenue base, it likely will no longer register rapid growth in the years ahead.
Apple shares trade at an expensive valuation, which limits upside for investors.
Everyone wants to find stocks that can turn them into millionaires, and buying Apple (NASDAQ: AAPL) early on would've done just that. Had you bought just $1,455 worth of shares exactly 30 years ago in August 1995, you'd be staring at a seven-figure dollar sum in your portfolio.
The consumer-electronics giant has become a global icon, thanks to its incredibly popular products and services, which have led to great financial success. However, if you're new to investing, you may be wondering if things could be the same going forward.
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Is this top tech stock, which has generated serious wealth for investors in the past, your ticket to becoming a millionaire in the future?
Shifting revenue composition
People know Apple for its hardware devices. The iPhone, for instance, is the company's crown jewel. This has been the case since the first model was released in 2007. It's remarkable to think that this single product has had a nearly two-decade run, with its relevance still continuing to this day.
In the fiscal 2025 third quarter (ended June 28), sales of the iPhone represented 47% of Apple's total revenue. The company's financial success still depends on selling more of these devices to people across the world.
That's not necessarily a positive attribute anymore. Given that feature updates aren't as revolutionary as they used to be, consumers have less incentive to spend more to switch to the latest iPhone iteration. This can pressure sales gains.
However, Apple's revenue structure is shifting more toward services. Offerings like Pay, Card, TV+, the App Store, Music, and advertising, among other things, raked in $27.4 billion in revenue in Q3, contributing 29% to the company's total sales base. The services segment grew 13.2% year over year and boasts a superb gross margin of 76%. Looking five or 10 years down the road, services are likely to represent a larger share of Apple's revenue if recent trends persist.
Apple's growth prospects
For a stock to turn its investors into millionaires, there needs to be significant growth potential. Given the maturity of the iPhone, as well as Apple's already colossal size, with trailing-12-month revenue of $408 billion, it's not realistic to expect huge gains going forward. According to Wall Street consensus analyst estimates, the business is projected to increase revenue at a compound annual rate of 5.7% between fiscal 2024 and fiscal 2027.
To its credit, though, Apple is working on a new range of smart home hardware devices powered by artificial intelligence (AI). A tabletop robot, home security cameras, and smart speakers are examples of what the business could soon launch.
One question remains: Can any of these new devices provide a meaningful boost to Apple's top line? While no one knows for sure, I'm going to adopt a conservative view and expect these products to become small contributors to the company's revenue over time. That's not exactly what bullish investors want to see.
Keep expectations in check
Apple is one of the highest-quality companies on the face of the planet, and very few would argue with that statement. Its unmatched brand presence, powerful ecosystem that keeps users locked in, history of innovation, and insane profitability are all wonderful traits that can't be overlooked. These characteristics are probably what compelled Warren Buffett-led Berkshire Hathaway to make a sizable bet on the company.
Despite this positive view of Apple, the stock isn't your ticket to becoming a millionaire. Those huge returns are a thing of the past. Given the expensive price-to-earnings ratio of 35, coupled with the muted growth prospects as we look ahead, it wouldn't be a surprise to see Apple shares underperform the broader market over the next decade.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.