Nineteen years ago, on September 7, 2005, Apple co-founder Steve Jobs unveiled the iPod Nano, a sleek and compact music player that changed the face of the music industry and cemented Apple’s position as a tech titan. This innovative device, launched just four years after the original iPod, captured the imagination of consumers and investors alike. But what if, instead of buying the latest gadget, you had invested that money in Apple stock?
The iPod Nano debuted as a replacement for the iPod Mini, boasting flash storage that made it smaller and more durable than its predecessors. Available in 2GB and 4GB models, it could hold up to 500 and 1,000 songs respectively, weighing in at a mere 1.5 ounces. The launch, famously presented by Jobs, saw him point to the tiny watch pocket in his jeans and ask, “Ever wonder what this pocket is for?” He then revealed the device. In a press release, Jobs declared, “iPod nano is the biggest revolution since the original iPod,” adding, “iPod nano is a full-featured iPod in an impossibly small size, and it’s going to change the rules for the entire portable music market.”
The iPod Nano enjoyed a remarkable lifespan, undergoing seven distinct redesigns over nearly 12 years. Its design evolved dramatically, showcasing a range of colors, an integrated video camera, and a clip that appeared one year and vanished the next. The device also shifted from tall and slim one year to short and compact the following year. However, on July 27, 2017, Apple quietly discontinued both the iPod Nano and iPod Shuffle from its product range.
Now, let’s rewind to the launch of the iPod Nano and see what your $1,000 investment in Apple stock would be worth today. On September 7, 2005, Apple’s stock, adjusted for stock splits and other corporate actions, was priced at $1.7385. Today, it stands at $220.82, representing a staggering 12,601% increase. That means a $1,000 investment in Apple stock back then would be worth a whopping $120,017 today. For comparison, a $1,000 investment in the Invesco QQQ ETF would have yielded $1,170, and a similar investment in an index fund replicating the S&P 500 would be worth $4,361.
In 2022, over two decades after the original iPod debuted, Apple officially ended production of its iconic portable music player line. The iPod Touch, the sole remaining model after the discontinuation of the iPod Shuffle and iPod Nano, was the last to fall. While it may seem insignificant now, the iPod, at its peak, was a major contributor to Apple’s revenue, often exceeding 50 million units sold annually.
The iPod Nano’s legacy lives on, serving as a reminder of how a seemingly small innovation can reshape an entire industry and fuel remarkable growth. It also underscores the potential power of investing in companies that are at the forefront of technological advancement. While the iPod Nano itself may be gone, its impact on both the music industry and Apple’s trajectory is undeniable.
