If you’ve ever looked at a historical chart of Apple (AAPL) and wondered how a company that started in a garage ended up with billions of shares in circulation, you’re looking at the magic of the stock split.
Most people just want a straight answer. So, here it is: Apple has split its stock exactly 5 times. But that number doesn’t tell the whole story. If you bought just one share of Apple back at its IPO in 1980, you wouldn't just have five shares today. Because of the way these splits compound—2-for-1, then 7-for-1, and so on—that single original share would have morphed into 224 shares by the time the most recent split settled in late 2020.
Honestly, the math is kind of mind-bending.
The Five Moments That Changed Apple's Share Count
Apple doesn't split its stock on a schedule. It’s not like a software update that drops every September. Instead, the board usually waits until the price gets "too high" for the average person to buy a single share comfortably.
Here is the breakdown of what actually happened and when:
- June 16, 1987: The first one. A classic 2-for-1 split. At the time, the Mac was finding its footing, and the stock had climbed to around $79. Suddenly, it was $39.50.
- June 21, 2000: Right at the peak of the dot-com bubble. Another 2-for-1 split. The stock was trading over $100. Then, the bubble burst shortly after, and Apple—like everyone else—took a massive hit.
- February 28, 2005: The iPod era. Apple was no longer just a "computer company." This was a 2-for-1 split when shares were near $90.
- June 9, 2014: This was the "Big One." Apple went with a massive 7-for-1 split. Why seven? It was a tactical move to get the price low enough to be included in the Dow Jones Industrial Average (DJIA), which is price-weighted. The share price dropped from roughly $645 to about $92 overnight.
- August 31, 2020: The most recent. A 4-for-1 split. Apple had surged past a $2 trillion market cap, and the price was knocking on the door of $500 again. After the split, it sat at a much more "retail-friendly" $125.
Why Does Apple Even Bother Splitting?
You might hear people say that a stock split is like cutting a pizza into more slices. You don't actually have more pizza. You just have more pieces.
That's true. The market capitalization (the total value of the company) doesn't change by a single penny just because of a split. If Apple is worth $3 trillion before a split, it’s worth $3 trillion five minutes after.
So why do it?
Psychology. Back in the day, before fractional shares were common on apps like Robinhood or Fidelity, you had to buy a full share. If a share cost $700, a lot of people were priced out. By keeping the price in that "sweet spot"—usually between $100 and $200—Apple makes it feel more accessible to the average person.
There’s also the liquidity factor. More shares at a lower price usually means more trading volume.
The "Invisible" Value: Looking at Split-Adjusted Prices
If you look at Apple's stock price today (trading around $260 in early 2026), it doesn't seem like it’s "crushing it" compared to, say, Berkshire Hathaway, which trades for hundreds of thousands of dollars.
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But that's an illusion.
To see the real growth, you have to look at the split-adjusted IPO price. Apple went public at $22 per share in 1980. If you account for all five splits, that $22 entry point is actually the equivalent of about **$0.10** today.
Basically, if you haven't sold, you're sitting on a gain of over 250,000%.
What Most People Get Wrong About the 7-for-1 Split
The 2014 split was weird. Most companies do 2-for-1 or 3-for-1.
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The reason for the 7-for-1 was almost purely political in the world of finance. The Dow Jones Industrial Average is a "price-weighted" index. This means a company with a high share price has more "vote" in where the index goes than a company with a low share price.
If Apple had entered the Dow at $600+, it would have completely dominated the index, making it move whenever Tim Cook sneezed. By splitting 7-for-1 and bringing the price down to $90, Apple became "small" enough to play nice with the other 29 companies in the Dow.
Will Apple Split Again in 2026?
We’re currently seeing Apple trade in the mid-$200s. Is another split coming?
Historically, Apple starts talking about splits when the price passes $400 or $500. We aren't quite there yet. However, with the success of their AI integrations (Apple Intelligence) and the steady growth of the Services segment, the "upward pressure" is definitely there.
Kinda makes you wish you'd bought that single share in 1987, doesn't it?
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Your Next Steps as an Investor
If you're looking at Apple right now, don't wait for a split to buy. In the modern era of fractional shares, splits don't matter as much for your "entry." You can buy $10 worth of Apple whether the share price is $200 or $2,000.
- Check your brokerage: See if they offer fractional trading. Most do.
- Ignore the "Cheap" trap: A stock isn't "cheaper" after a split; it's just smaller units. Focus on the P/E ratio and earnings growth instead.
- Think Long-Term: The people who got rich from Apple didn't trade the splits. They held through the 2000 crash and the 2008 recession, letting those 5 splits do the heavy lifting of compounding their share count.
Practical Note: If you want to track your own "true" cost basis, always look for the "Split-Adjusted" column in your brokerage's tax center. It'll save you a massive headache come April.