We recently published 10 AI analyst calls you should pay attention to. Apple Inc (NASDAQ:AAPL) is one of the stocks that analysts were talking about recently.
Daniel Newman, CEO of The Futurum Group, said on a recent show on Schwab Network that things are “tough” for Apple because the market may not be enthusiastic about investing in the stock despite its new iPhone 17.
“I think the problem with Apple Inc (NASDAQ:AAPL) is that everything that’s coming out today is actually pretty incremental. Yes, the phone is thinner and yes, it looks great. We haven’t had a big super cycle in four years. We were told that, hey, Apple Inc’s (NASDAQ:AAPL) intelligence last year was going to drive this big cycle. It didn’t really do that. Now we have the thinnest phone of all time, longest battery, does it? Drive a super cycle? And of course we’re waiting on the price because we want to know if these phones have a little bit longer battery, a little bit nicer screen, maybe a little bit more durable, will people run out and buy them? And if they are going to charge more, if the tariffs are going to start to impact, that can also be a problem. So I think it’s a difficult position. The advertisements have been good, but I think with everything Nvidia is doing and everything Google is doing right now, it’s difficult. for that investor to say: ‘I want to put a dollar here in Apple.’”
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Early indicators point to a strong consumer response to the latest iPhone 17. However, can this enthusiasm boost the stock in the long term, especially when the company is falling behind in the AI race?
Apple Inc (NASDAQ:AAPL) can only do so much in terms of innovation to revolutionize its iPhone each year. A UBS survey shows that the iPhone update cycle has reached 35 months in the United States. A separate report from Consumer Intelligence Research Partners says that about 63% of iPhone users keep their smartphones for more than two years. Apple Inc (NASDAQ:AAPL) is losing its pricing advantage as it has to cap its prices to compete in key markets like China. Samsung, Xiaomi and other companies may launch advanced hardware and software features to compete with Apple Inc (NASDAQ:AAPL) and keep the company under pressure in Asia.
Macquarie Core Equity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2025 Investor Letter:
“Apple Inc. (NASDAQ:AAPL) fell for the quarter and significantly underperformed the S&P 500. The stock contributed to relative performance due to our underweight, approximately 50% less than the benchmark’s weight. While Apple continues to have laudable attributes and strong repurchase intent, the company is failing to grow at historic rates given the maturation of many key products.”