Over the past year, Apple Inc. (AAPL) has not delivered the most impressive returns for investors. Although its stock price rose about 8% in 2025, it still underperformed the S&P 500 and fell far short of the double- or even triple-digit gains achieved by many other tech companies. As tech investors flocked to artificial intelligence (AI) concept stocks, Apple—which has not yet been at the forefront of AI development and application—often fell outside their selection scope.
However, this weak stock market performance does not reflect the company’s recent earnings situation. As the manufacturer of leading devices like the iPhone and Mac, Apple has long maintained significant growth—even reaching an important milestone in the most recent quarter, solidifying its position as a long-term industry winner. For instance, both revenue and earnings per share hit record highs during the quarter.
Now, the question is: Will Apple’s explosive growth continue? One often-overlooked data point may hold the answer.
First, it is essential to understand Apple’s recent trajectory—and why it has not become the top AI stock pick for tech investors. As mentioned earlier, Apple has become a market leader in the device space, with the iPhone being the crown jewel of its business, providing the company with a deep moat and competitive advantage. This moat is Apple’s brand strength. iPhone users remain highly loyal to the product, are willing to wait for updates, and pay a higher premium compared to competing products.
According to data, the iPhone 16 was the world’s best-selling smartphone last year, with Apple accounting for seven out of the top ten best-selling models. Considering that Apple launched its first iPhone as early as 2007, this product has clearly demonstrated its ability to maintain a leading position over the long term.
While Apple focuses on device upgrades and enhancing user experience, the company has not been a pioneer in diving into the AI field. Instead, Apple has taken a more cautious approach to developing AI and deploying related features in its devices—only introducing Apple Intelligence at the end of 2024. This means that investors hoping to bet on the AI boom often skip Apple and opt for companies fully committed to the technology.
In the most recent fiscal quarter, Apple’s revenue grew 16% to over $143 billion, while diluted earnings per share increased 19% to $2.84—both setting new records. The company described iPhone demand as “astonishing,” with the device achieving its best quarterly performance ever.
Although Apple is already a mature market giant, this performance indicates that it still possesses the ability to achieve significant growth. Will this growth continue? Indeed, demand for new smartphones is cyclical—users do not immediately purchase a new device the year after upgrading. Apple must continue to innovate, encouraging users to upgrade earlier rather than sticking with older devices.
Here is an often-overlooked yet decisive piece of data for setting the tone of growth: the increase in “switchers”—users who previously used other phone brands and recently switched to the iPhone. In China, which accounts for about 18% of Apple’s total sales, the number of switchers achieved double-digit growth this quarter.
This ability to expand its user base in key markets suggests that Apple’s growth momentum is still ongoing. Apple does not need to rely entirely on upgrading users, as it continues to see significant growth among new customer groups. Now, with some investors reducing their holdings in AI concept stocks that surged last year, they may consider positioning themselves in this tech giant—especially when its forward price-to-earnings ratio valuation is at a reasonable level of around 30 times.
