There's no denying Apple (NASDAQ: AAPL) isn't quite the must-have stock it was when the iPhone was still relatively new. Although it's certainly still one of the market's most respectable prospects, the old spark simply isn't there. It happens.
However, don't let a lack of excitement deter you from stepping into a new position in this name. While the thrill is gone, the upside potential isn't. This company's still got a great deal going for it, even if most investors don't seem to see it or care. Here are the top three reasons to buy Apple stock -- today.
The AI-enabled iPhone is the real deal
By the time it was officially unveiled this on Sept. 9, little about Apple's latest iPhone -- the iPhone 16 -- surprised anyone. The basic and the so-called "plus" versions of the world's most popular smartphone offer an improved camera and a more functional action button.
Of course, these updated devices are powered by an A18 processor chip capable of handling artificial intelligence (AI) duties directly from the phone itself. (In almost all cases right now, this work is handled in the cloud, slowing down the workflow.)
The market's response to the unveiling was ho-hum. Investors already knew not only that the iPhone 16, scheduled to go on sale later this month, would be capable of handling AI work but also that the Apple Intelligence software that will turn a properly equipped iPhone or iPad into a true AI device won't be made available until next month. And even then, it won't be a worldwide launch of everything Apple intends for its AI platform to be.
Every day's delay is an opportunity for competing tools like Alphabet 's Google Gemini and Microsoft 's Copilot to become the AI tool of choice for consumers.
What's largely being underestimated is the continued strength of the Apple brand and users' loyalty to it. Bloomberg Intelligence reports that 93% of current owners of Apple devices would buy another Apple device versus only 80% of current users of Android devices. The option to own a true self-contained AI device might just be the upgrade this crowd's been waiting for. And there's little doubt Apple Intelligence will be Apple's typical easy-to-use tech.
The right tailwind is certainly in place, too. Technology market research outfit IDC believes the world will see sales of 234.2 million generative-AI-capable smartphones this year, en route to 912 million such devices in 2028. Apple's sure to win at least its fair share of this long-term growth. The slow rollout of Apple Intelligence isn't likely to be a lingering problem.
It's increasingly about high-margin services
When the iPhone was still relatively new, it in and of itself was a profit center. And in most regards, it's still a huge source of revenue, making up about half of Apple's sales.
As time has marched on, though, the iPhone has become a means to another end. Namely, it's driving demand for digital services, like apps, streaming video, music, and more, now that people have easy access to such offerings at their fingertips. Services are now Apple's second-biggest revenue driver behind the iPhone, in fact, accounting for nearly one-fourth of the company's top line.
This obviously still leaves the iPhone as Apple's primary breadwinner. There's a detail worth noting here, however. While devices like the iPhone ultimately account for three-fourths of the company's total business, in that it's a much higher-margin business, services generate nearly 40% of Apple's gross income .
Data source: Apple. Chart by author. Figures are in millions.
That proportion is only apt to continue swelling, too, as more consumers purchase the new iPhone for its AI capabilities and then end up using other features and offerings of the iOS ecosystem.
Apple stock is down when it shouldn't be
Finally, you may want to take on a new position in Apple stock sooner than later for the simplest of reasons -- it's down from July's peak despite the recent publicity event that introduced a range of improved and updated consumer technologies, such as the aforementioned iPhone 16.
It's not quite the norm. More often than not Apple's September events light a fresh fire under the stock. This year, shares started soaring in June in response to early glimpses at the company's long-term AI ambitions. By July, most of what was confirmed this past week was already priced into the stock, and then some. That's why the stock's been sliding since then, continuing to do so after this month's high-profile unveiling.
That's not likely to be the case much longer, though.
See, despite Apple's late-to-the-party, slow-moving entry into the AI race and the stock's recent pullback, Wall Street remains bullish. The majority of the analyst community still considers the stock a strong buy, with a consensus target price of $247.22. That's about 11% above the stock's present price, which isn't much, but it's certainly a start.
As Apple's AI efforts start to prove themselves marketable growth drivers, don't be surprised to see Wall Street begin raising its average price target. Of course, this will blaze a trail for the ticker to move higher as well.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy .
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