Apple’s first affordable product: its stock.......
Apple’s stock split may make shares more enticing to consumers
Apple inc..is finally planning to reduce prices — but only of the price of one share of stock.
On Wednesday, the company AAPL +0.21% announced a 7-for-1 stock split to take place in June. At current prices, that means one share of Apple stock will cost retail investors around $81 each, and experts say the cheaper stock price could attract a new generation of Apple-obsessed investors.
“I initially thought the stock split didn’t have much of a point,” says Will Strafach, an iPad and iPhone developer. “Anyone who didn’t have the spare cash to invest in Apple at the current price probably wouldn’t have enough to get enough shares after the split.” But he soon changed his mind after polling his 49,000 Twitter followers . “Some who don’t have cash for one share now want to buy in after the split as a symbolic gesture, and for others it seems to be about the psychology in regards to the lower pricing,” he says.
The stock split allows more people to become stakeholders and buy more products, says Scott Davis, chief growth officer at marketing consultancy Prophet. “The accessibility angle is both strategic and smart,” he says.