Analyst on Apple (AAPL) After iPhone 17 Launch: AI 'Still a Problem' But Company Has 'Shifted the Story'

We recently published Analysts Are Talking About These 10 Stocks as AI Investments Continue to Grow. Apple Inc (NASDAQ:AAPL) is one of the stocks analysts were recently talking about.

Alex Kantrowitz, Big Technology Founder, said in a latest program on CNBC that Apple Inc (NASDAQ:AAPL) has finally shifted the market focus from AI to its core business of iPhones with the latest model launch of its flagship device. The analyst thinks Apple’s lack of progress on AI is “still a problem,” but the company has “shifted the story” for now.

“Well, the first thing I would say is it’s great news for Apple Inc (NASDAQ:AAPL) that there’s a story about the company that is not involving Apple Inc (NASDAQ:AAPL) intelligence or AI. We are going back now to the roots of Apple Inc (NASDAQ:AAPL) which is that they are an excellent phone maker and the improvements that they showed for this model are coming out. People want these models because they’re more durable because they have better battery life and they are going back to their bread and butter and we’re hearing about the product itself and people are responding. So, I think the narrative that’s been around Apple Inc (NASDAQ:AAPL) not being able to do artificial intelligence over the last few years, that’s still a problem, but they’ve shifted their story. People are responding. They’re going out lining up to buy the phones both in New York, but also in China, which is really important.”

Apple can only do so much in innovation to revolutionize its iPhone each year. A UBS survey shows that the iPhone upgrade cycle has reached 35 months in the US. A separate report from Consumer Intelligence Research Partners says about 63% of iPhone users keep their smartphones for more than two years. Apple is losing its pricing edge as it has to put a cap on its price tags to compete in key markets like China. Samsung, Xiaomi and other companies can launch advanced hardware and software features to compete with Apple and keep the company under pressure in Asia.

Macquarie Core Equity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) declined in the quarter and meaningfully underperformed the S&P 500. The security contributed to relative performance due to our underweighting, approximately 50% lower than the benchmark weight. While Apple continues to have laudable attributes and strong repurchase intent, the company is failing to grow at historical rates given the maturation of many key products.”

While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.