3 Reasons to Buy Apple Stock Like There’s No Tomorrow

It can’t be denied Apple (AAPL 0.05%) is no longer the essential commodity it was when the iPhone was still relatively new. While it’s certainly still one of the most respected prospects on the market, the old spark just isn’t there. It happens.

But don’t let a lack of excitement stop you from taking a new position in this name. While the excitement has died down, the potential for growth remains. This company still has a lot to offer, even if most investors don’t seem to see it or care. Here are the top three reasons to buy Apple stock — today.

iPhone with AI support is a real treat

When it was officially unveiled on September 9, there was little about Apple’s latest iPhone, the iPhone 16, that surprised anyone. The base and so-called “Plus” versions of the world’s most popular smartphone offer an improved camera and a more functional action button.

Of course, these improved devices are powered by the A18 processor, which can handle artificial intelligence (AI) tasks right from the phone itself. (Most of that work is currently done in the cloud, which slows down the whole process.)

The market reaction to the unveiling was lackluster. Investors already knew not only that the iPhone 16, scheduled to ship later this month, would be AI-capable, but also that the Apple Intelligence software that turns a suitably equipped iPhone or iPad into a true AI device wouldn’t be available until next month. And even then, it wouldn’t be the global premiere of everything Apple has planned for its AI platform.

Every day of delay is an opportunity for competing tools such as AlphabetGoogle Gemini and MicrosoftCopilot aims to become the AI ​​tool of choice for consumers.

What is largely underappreciated is the continued strength of the Apple brand and the loyalty users have for it. Bloomberg Intelligence reports that 93% of current Apple device owners would buy another Apple device, compared to just 80% of current Android device users. The ability to have a truly autonomous AI device could be the upgrade this crowd has been waiting for. And there’s no doubt that Apple Intelligence will be typical easy-to-use Apple technology.

There’s certainly some tailwind, too. Technology research firm IDC believes the world will see 234.2 million generative AI smartphones shipped this year, rising to 912 million in 2028. Apple will certainly get at least its fair share of that long-term growth. The slow adoption of Apple Intelligence is unlikely to be a chronic problem.

It is increasingly about high-margin services

When the iPhone was still relatively new, it was a profit center in its own right. And in many ways, it still is a huge source of income, accounting for about half of Apple’s sales.

Over time, however, the iPhone has become a means to another end. Namely, it drives 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-largest revenue driver after the iPhone, in fact accounting for almost a quarter of the company’s top line.

Of course, the iPhone remains Apple’s main earner. But there’s one thing worth noting. While devices like the iPhone ultimately account for three-quarters of the company’s total business, because it’s a much higher-margin business, services generate almost 40% of Apple’s gross income.

Data source: Apple. Chart by author. Numbers in millions.

These proportions will likely continue to grow as more consumers purchase the new iPhone for its AI capabilities and then take advantage of other features and offerings in the iOS ecosystem.

Apple shares are falling, but they shouldn’t

Finally, you may want to take a new position in Apple stock sooner rather than later for the simple reason that the price has fallen since its July peak, despite a recent publicity event that showcased a number of improved and updated consumer technologies, such as the aforementioned iPhone 16.

That’s not the norm. Often, Apple’s September events light a new fire under the stock. This year, the stock began to surge in June on early flashes of the company’s long-term AI ambitions. By July, most of what was confirmed last week had already been factored into the stock price, and then some. That’s why the stock has been down since then, and is still down after this month’s high-profile reveal.

Although that probably won’t be the case for much longer.

See, despite Apple’s late entry into the AI ​​race and recent pullback, Wall Street remains bullish. The stock is still considered a Strong Buy by most of the analyst community, with a consensus price target of $247.22. That’s about 11% above the current share price, which isn’t a lot, but it’s certainly a start.

As Apple’s AI efforts begin to prove themselves as a market growth driver, don’t be surprised to see Wall Street start to raise its average price target. Of course, that would pave the way for the ticker to rise.

Suzanne Frey, a director 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 at $395 call options on Microsoft and short January 2026 at $405 call options on Microsoft. The Motley Fool has a disclosure policy.