In recent years, skepticism about Apple Inc. (AAPL) has been persistent. Apple has not entirely escaped the challenges it currently faces—U.S. antitrust litigation is still ongoing, and tariff policies continue to affect its financial performance. However, the resilience the company has demonstrated amid adversity fully attests to the strength of its business model. Below are three reasons why Apple’s stock remains attractive.
Apple is accelerating the integration of artificial intelligence (AI) into its product ecosystem. At its recent Worldwide Developers Conference, the company unveiled several major AI-related initiatives, the most notable being the upgrade to Siri AI. Leveraging AI technology, the virtual assistant has been significantly enhanced—not only becoming more personalized, but also helping users retrieve information more quickly, and adding new features for conversation storage and backtracking. These innovations are expected to resonate with Apple’s loyal user base, thereby sustaining product demand and further reinforcing the high-margin services ecosystem that underpins its business.
Notably, despite external perceptions that Apple lagged behind tech peers of similar scale in AI deployment, the company has stayed true to its characteristic steady approach—not rushing to be first, but rather focusing on innovating atop existing technologies and ultimately achieving great success. The AI strategy has already begun to positively impact financial performance, with strong sales of the latest iPhone 17 partly attributable to the empowerment of Apple Intelligence. Looking ahead, the rollout of Siri AI and additional new features is expected to sustain this momentum.
Apple is expected to release its new iPhone series later this year. Market rumors suggest that, in addition to the usual entry-level, Pro, and Pro Max models, Apple may also introduce a foldable version—the iPhone Fold. If true, this product would directly compete with similar devices already launched by some peers, which have garnered considerable market reception. Apple may be aiming to capture additional market share. Ideally, the iPhone Fold would be as highly innovative as rumored, further boosting sales growth and attracting a significant number of new users into its ecosystem. Should this goal be achieved, Apple’s medium-term outlook would be notably strengthened.
Investors should also not overlook Apple’s dividend policy. Although its forward dividend yield is only 0.4%, the company has consistently raised its dividend payouts, with a 89.5% increase over the past decade. At the same time, Apple boasts robust free cash flow, which reached approximately $129.17 billion over the trailing 12 months. This provides ample funds for R&D investment to maintain its competitive edge, while still leaving plenty of capital to reward shareholders. Furthermore, management recently approved a new share repurchase program of up to $100 billion, which undoubtedly represents an additional boon for investors.
