Apple Inc (NASDAQ:AAPL) is one of the 10 Stocks to Watch in July as AI Enthusiasm Returns.
Gene Munster from Deepwater Asset Management said in a recent program on CNBC that Apple Inc (NASDAQ:AAPL) can benefit in the second half of 2025 amid revised investor expectations about AI and iPhone growth. Here is how Munster explained his hopes for the iPhone maker:
“I would also mention that there’s this added benefit—the fact that they’ve essentially reset the bar. Don’t expect anything from us about AI over the next year. The fact that they’ve reset that bar, I think it really does lower what some of investors’ expectations are for Apple and AI the next year. In other words, that low bar, I think, can be positive for the stock in the back half of the year. And I think investors are kind of processing that piece—how much room to give them.”
A wide view of an Apple store, showing the range of products the company offers.
Munster said iPhone sales have seen negative impact lately but he’s seeing a silver lining there as well:
“The iPhone numbers have come down pretty dramatically over the past six months. If we rewind to late last year, investors were generally looking for about 6% iPhone growth this year and about 8% next year. Now it’s about 1% and 4%. And so, Morgan, when I think about the opportunity for the stock, I think that this can kind of win on two phases. One is just the simple block and tackle of people coming back, buying their iPhones, doing what they do, committed to the Apple platform. I think that should bode well for Apple iPhone numbers, but also kind of some growing anticipation for that new Siri next year.”
Apple Inc (NASDAQ:AAPL) is desperately in need of new catalysts. The company’s revenue in China fell 8% in fiscal year 2024, following a 2% decline the previous year. The Chinese market accounts for about 15% of Apple’s total revenue, so this downtrend cannot be ignored.
Investors had hopes from the Wearables, Home, and Accessories segment, but so far its performance has been weak. Vision Pro faces tough competition from Meta’s $500 Quest and the more affordable Quest 3S, making it hard to justify its $3,500 price tag. The failure of Apple’s HomePod, unable to compete with Amazon’s and Google’s lower-priced offerings, further highlights the challenges in this market.
Apple’s iPhone 16 has not shown promising growth prospects yet and investors are still in a wait-and-see mode on the AI platform.
Columbia Seligman Global Technology Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q1 2025 investor letter:
“The fund maintained an underweight position in Apple throughout the quarter. Apple Inc.’s (NASDAQ:AAPL) stock pulled back during the first quarter, in line with the performance of many other technology stocks, and the company experienced some challenges of its own during the quarter. Apple delayed the release of an AI-upgraded Siri, claiming that the new Siri was taking longer to complete than the company expected, and it should come out later this year. The U.S. Department of Justice also stood firm — as it did during the prior administration — in asking a federal judge to block Google from paying Apple and other companies to secure its search engine as a default on smartphones and other devices.”
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Disclosure: None. This article is originally published at Insider Monkey.
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