"Apple's stock price has depended on a single thing. iPhone sales have continued to be remarkably successful. According to Counterpoint, Apple led the global smartphone market in 2025 with 20% share and 10% annual shipment growth. That was the highest among the top five brands. It topped rival Samsung, which had a market share of 19% and rose only 5% year over year. Counterpoint credits sales of the new iPhone 17 for Apple's success."
"The appeal of the iPhone 18 will be weaker when it is released in September (the usual release schedule), and iPhone 17 sales will slow. That is because, despite a new relationship with Alphabet to bring artificial intelligence (AI) to the smartphone, it will be too little too late. Apple promised the AI product in a release of iOS early this year. It was unable to build this in-house, so it turned to Alphabet's Google to use its Gemini AI product,"
"The integration faces two hurdles. First, it will not happen overnight. This means Apple's AI capacity will come later, and later than planned. The second challenge is that the integration will be with Apple's Siri, which has a mixed reputation. Apple also cannot overcome the fact that other AI products are among the most downloaded on the iPhone. ChatGPT and Gemini are in the top four "Total App Downloads." Grok is in 10th place."
One Magnificent 7 stock will sharply underperform the rest over the next year: Apple Inc. Only Nvidia and Alphabet outperformed the S&P 500 in 2025 while other group members underdelivered. Apple's share performance has relied heavily on strong iPhone sales. Apple led the global smartphone market in 2025 with a 20% share and 10% annual shipment growth, outpacing Samsung. The planned integration of Alphabet's Gemini AI into iOS will arrive later than intended and will be tied to Siri, which has a mixed reputation. The late AI rollout and widespread use of other AI apps on iPhone will weaken future iPhone demand.
Read at 24/7 Wall St.
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