Key Points

Apple arrived conspicuously late to the artificial intelligence party, and most investors still don’t think it has fully caught up with its peers and rivals.

The company has, however, finally laid the right foundations for growth on this front.

The fact that Apple stock is still mired in investor pessimism sets the stage for an explosive move higher once the market recognizes how far the company has actually come.

10 stocks we like better than Apple ›

He may be slated to step down as Berkshire Hathaway’s CEO and chief stock-picking guru at the end of this year. The fact remains, however, that Warren Buffett is still Warren Buffett, and his picks are still Warren Buffett picks — you could certainly do worse than borrowing a few of his ideas for your own portfolio.

And one of his major holdings looks particularly promising for the foreseeable future. That’s Apple (NASDAQ: AAPL). Indeed, this once must-have ticker could go parabolic before the end of this year, and then keep rising as it so often has.

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A young woman sitting in front of a laptop looking through a window into the distance.

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A rough AI start has taken a toll on the stock

Surprised? It would be a little surprising if you weren’t. Anyone keeping tabs on this stock likely knows that not only has it underperformed the market since late last year, but that it’s actually down 15% year to date versus the S&P 500’s respectable 6% gain.

Tariff-related troubles aside, that result can mostly be blamed on the company’s unimpressive foray into the artificial intelligence arena. Interest in its newer AI-capable smartphones has been modest, crimped by a new-and-improved version of its Siri digital assistant that isn’t actually new or improved. Apple’s facing a class action lawsuit for arguably overstating the pace and depth of Siri’s progress, in fact.

The company’s biggest headache right now, however, is also its biggest opportunity.

Yes, in a very un-Apple-like manner, Apple dropped the ball on the artificial intelligence front. While the AI-capable processors found within the iPhone 16 (and newer) introduced in September of last year, along with some higher-end versions of the iPhone 15, are up to the task, the Apple Intelligence software that makes the most of this hardware isn’t. That’s why iPhone sales haven’t grown as expected — as measured by revenue as well as units sold — compared to this time last year. Indeed, iPhone sales haven’t meaningfully grown at all since October, shortly after the iPhone 16 became available.

Despite AI-driven hype, Apple’s iPhone business hasn’t grown since 2022, as measured by revenue or units.

Data sources: iPhone revenue from Apple. iPhone unit sales from IDC. Chart by author.

Meanwhile, UBS reports that according to its latest survey on the topic, consumers’ intent to purchase an iPhone now stands at a five-year low.

The thing is, there’s nothing more motivating to a for-profit corporation than the fear of a failure that could knock it off of a pedestal.

Apple is making progress on artificial intelligence

Getting straight to the point, Apple has finally figured out how to make its AI efforts matter to consumers.

You might not recognize that from a quick glance at its recent work. Last month’s Worldwide Developers Conference, which saw the unveiling of a handful of new artificial intelligence features, was a strangely ho-hum event that failed to excite investors — or, seemingly, the developers themselves.

Don’t mistake hesitation for disinterest, though. A handful of subtle game-changers were introduced at 2025’s WWDC.

Case in point: In conjunction with a close-up look at the newest version of Apple Intelligence, the company also introduced what it’s calling the Foundation Models framework. This developer-oriented offering is something of a departure for Apple in that it gives developers’ apps direct access to the on-device language model that serves as the heart of Apple Intelligence.

And this is no small matter. As IBM principal research scientist Kaoutar El Maghraoui commented, “Giving the developers access to Apple’s AI models, being able to basically play with these models, fine-tune them — I think that that’s really powerful.” More to the point, this new approach allows app developers to get more functionality out of newer iPhones, taking some of the pressure off Apple to do so.

Other new AI tools introduced at June’s developer conference include a feature called Visual Intelligence that turns an iPhone’s camera into an information-gathering tool, and Workout Buddy, which provides real-time physical fitness guidance based on the user’s fitness history.

All the bad is already priced in

There’s still more to be done, to be clear. Namely, Siri is still conspicuously missing some features it was supposed to have by now. Apple Senior VP of Software Engineering Craig Federighi explained during June’s conference that “we’re continuing our work to deliver the features that make Siri even more personal. This work needed more time to reach our high-quality bar, and we look forward to sharing more about it in the coming year.”

Translation: The company’s still regrouping after removing John Giannandrea from the role of Siri chief by shifting the Siri portfolio to the desk of Apple Vision Pro lead Mike Rockwell in March — no small disruption. As it stands now, the new AI-enhanced version of Siri won’t be launching until next year.

As the old adage reminds us, though, things happen when you least expect them to.

Even if most investors aren’t allowing themselves to see or believe it, Apple’s AI ambitions are coming to fruition. It’s just happening slowly and gradually rather than with the sorts of splashy unveilings that investors have come to expect from the company.

But what about the tariff threats, or the fact that Berkshire has been shrinking its stake in Apple of late? The conglomerate has pared its position in the tech giant back by roughly two-thirds since 2019.

Keep those sales in their proper perspective: Apple is still Berkshire Hathaway’s single-biggest equity holding, making up more than 20% of its stock portfolio. This speaks volumes about what Buffett and his lieutenants think of its future despite the threat of tariffs.

Or, think about it like this. All the doubt and pessimism currently surrounding Apple? It could be the ideal contrarian buy signal for the stock, rooted in the idea that things are already as bad as they’re going to get. Viewed from that perspective, the most likely direction for the stock from here is up.

Just be patient if that’s your thinking. While Apple may be primed for a parabolic move upward, investors can have no real clarity yet as to exactly when that move might start.

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Apple is working on a foldable iPhone model that could be released as soon as 2026, according to a report.

The California-based tech company – valued at $3.46 trillion – contacted suppliers in Asia to manufacture parts for the new phone, two sources with direct knowledge of the matter told The Information.

The phone would fold widthwise, sources told The Information, making the design very similar to the Samsung Galaxy Z Flip released in 2020. The Galaxy Z phones cost between $850 and $1,900 on the Samsung website.

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5 Apple is reportedly working on a foldable iPhone model that could be released in the next few years. REUTERS

The foldable Apple iPhone release is not yet guaranteed, as the tech giant often cancels projects.

If the rumored model makes it to shelves, it would be one of the most radical changes to the iPhone design since its 2007 launch.

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Apple has reportedly created an internal code name for the fold phone project — V68 — which indicates the manufacturing process is moving along. Apple is reportedly planning to create foldable phones in two different sizes, The Information said.

Typical iPhone models usually take about 24 months to manufacture from start to finish, but a foldable iPhone might take longer to complete, sources told The Information.

5 The foldable iPhone is allegedly similar to the Samsung Galaxy Z Flip phones (above). AP

Apple designers face some potential challenges when it comes to a foldable phone, like preventing the crease that forms in the middle of the screen from repeated folding.

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Designers would also have to create an extra thin model, since folding the phone will double the thickness and it should be thin enough to fit in a pocket.

But it looks like that problem may be on its way to being solved, since Apple plans to release a much thinner iPhone model next year, The Information previously reported.

5 Apple designers have faced some challenges, like creating an extra thin phone and preventing screen creases. REUTERS

Apple also faces the problem of creating exciting, new features that will entice customers to snap up the foldable phones, since they will be sold at a higher price point.

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The tech giant is not without competition. Samsung currently dominates the foldable phone market, though its share of the market has declined – from 80% of the market share in 2022 to just under 70% in 2023, according to market research firm TrendForce.

Foldable phone sales have been increasing, with global shipments of 15.9 million units in 2023 – representing a 25% year-to-year increase, according to TrendForce.

5 Global shipments of foldable phones have increased, though they still make up a small portion of the overall market. Aleksei – stock.adobe.com

However, foldable phone sales still account for just 1.4% of the overall smartphone market, according to TrendForce.

A consumer lag in jumping ship to the foldable phone trend is likely due to high price points and maintenance issues with the screen creasing.

Shipments are expected to continue rising, though, by 11% to 17.7 million units in 2024, according to TrendForce.

Along with the rumored foldable phone, Apple is expected to release other product updates in the next few years.

Apple plans to add a new button for taking photos and videos to the bottom right side of the upcoming iPhone 16, The Information said.

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The iPhone 16 – which is expected to launch in September 2024 – will also feature an easier method for replacing its batteries, to comply with European regulations, and a larger graphite sheet to deal with overheating issues, The Information said.

Some of the less expensive iPhones will also receive the same optical zoom function that was previously reserved for the high-end phones.

5 Apple is reportedly planning other updates for the iPhone 16, like a new photo button. AFP via Getty Images

Apple is reportedly planning a fourth-generation version of the iPhone SE and some notable camera upgrades that will allow users to control lens aperture instead of relying on portrait mode.

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The iPhone has evolved over time – with new face and recognition technology, advancements to the virtual voice assistant Siri and updated iOS operating systems – but its physical design has resisted any major overhauls.

A volume button has shrunk or changed places here and there and the newer iPhone models have sharper edges than the older, rounder models.

Perhaps the most significant change occurred when Apple axed its trademark home button.

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In 2016, Apple released the iPhone 7, which replaced the home button with an unmoving, outlined circle at the bottom of the screen.

Then, Apple released the iPhone X in 2017 with a full screen on its front – no button.

A foldable phone would be a massive change to the tech brand’s pattern of pushing out new iPhones yearly with little to no significant design changes.

Fashion and technology – two worlds that have become more and more connected in recent years and often create interesting synergies, but sometimes quite bizarre products. Phone cases for tens of thousands of crowns or, for example, a combination of fashion and Metaverse. We will discuss all this with my guest today, the stylist and one of the most famous fashion gurus in our country, Filip Vaňek. Sit comfortably and come and see the world, which, as Filip himself says, is definitely not for everyone and which is to some extent the most superficial world, but also a world with which he is trying to get closer and closer not only Apple.

Hi Filip, could you please introduce yourself to our readers so they know why I invited you to the interview about the fusion of fashion and technology, apart from the fact that I consider you a friend?

Hi Roman, and greetings to the reader, are you referring to the fact that I studied computer technology? That is, once upon a time in prehistoric times!

Let’s start right from the beginning. Apple in 2014, he hired former Burberry CEO Angela Ahrendts to become senior vice president for the retail chain Apple Store. Apple then began to express himself in the sense that he wants to de facto turn his stores into boutiques and that he wants to connect his products and fashion much more. Do you think this is the right way and should there be a perception of phones, watches or computers as part of the fashion industry?

But they succeeded to some extent, iPhone I see them to some extent as a fashion accessory and just as people have a desire to have the latest handbag or sneakers that the aforementioned Burberry will introduce, for example, they feel the same desire when a new generation of phone is introduced. Many people around the world see the phone as an accessory, perhaps even a status accessory, and this is also the case with certain fashion accessories.

Gallery star stylist Filip Vanek interview with Filip Vanek filip vanek interview filip vanek and interview interview with Filip Vanek filip vanek photo photo by Filip Vanek Filip Vanek vanek filip star stylist Filip Vaněk fashion filip vanek filip vanek fashion vanek filip stylist Stylist Filip Vanek Vanek Filip Filip Vanek Enter the gallery

Apple became the first technology company in the world to associate its products with a fashion house. Particulary speaking about Apple Watch in the Hermés edition. Why do you think you chose this particular francan Ouzian icon, which I, for example, consider to be the absolute pinnacle of high fashion.

I would take the liberty of disagreeing with you here. Probably the very first fusion of luxury fashion and technology was the introduction of the Motorola/Dolce & Gabbana Razer phone I think in 2006. I remember it being hard to get my hands on back then and there was nothing more luxurious you could hold in your hand until then, before in 2008 he introduced his Dior phone, which was also a clamshell and at that time also offered a pendant, thanks to which you could make calls, even if you had the phone itself somewhere in your purse. Now that I’m talking about it, I want to dig them both out at home and start talking to them again, compared to today’s ones, they were far more luxurious and looked like jewelry. Their workmanship and materials were really luxurious, not like the current ones. They just didn’t know much. But then they were technological peaks, and they have become so.

I would like to return once more to the first question. A video of Kanye West shopping at a Balenciaga boutique is currently circulating on Instagram, with the most prominent element of his outfit being his headphones Apple AirPods Max. As we both know, it’s people like Kanye or Justin Bieber who set the trends. Do you think there are people who wear headphones from AppWill they buy them just because they are trendy and not really care about how they actually play?

You see, another fusion of technology and fashion. That’s how it goes in fashion too. All it takes is for the right person to wear something and people don’t care if it’s cashmere or polyester and they just want it right away. That’s also the case with the headphones you’re talking about. I bought a Balenciaga sweat jacket yesterday, I also saw it on someone. I don’t really know what I’m going to wear it with, I didn’t really need it at all, but I just wanted to have the same jacket I saw on Justin Bieber. It works great. I also promoted Vertu and then Huawei phones for a few years and people bought them because I used them.

A few years ago I wanted to buy a T-shirt, I think it was Balenciaga, and thenoneI didn’t buy it because it expressed agreement with something I personally disagree with. Apple has recently been producing more and more accessories, especially bracelets for Apple Watch, which express affection for something. The last of them is, for example, the Unity bracelet, which Apple it literally reads “The new Black Unity strap and matching Unity Lights dial, inspired by Afrofuturism, symbolize the need for a more just future for the current generation of people of Black descent.” How do you feel about expressing sympathy for a movement or issue through fashion? Should I deal with this as a customer, or if I just like the Unity bracelet, should I buy it regardless of what it says?

I don’t have it like that. It’s not close to me and I don’t want to express any of my attitudes towards anything through the mod. For example, when Balenciaga redesigned the collection with GAY inscriptions, I also liked some pieces, but I don’t want to wear them. But there are people who like to show their attitudes precisely thanks to these attributes, such as a bracelet or a T-shirt with the inscription GAY. It’s everyone’s business, but I’m guessing that those bracelets supporting the generation of people of black origin won’t sell much in the Czech Republic, when we have a total of 8 African-Americans here. I believe it is meaningless in our latitudes.

Do technological products such as phones, tablets or smart watches set fashion trends? For example, is the size of phones reflected in fashion houses making pockets bigger or smaller, for example?

Well, definitely not. You know, fashion is more than technology. It’s been around for a long time and it’s going to be around for a long time and it’s the most profitable industry ever. You’re not going to see a famous fashion house changing its style for a phone, quite the opposite. You might have noticed the very small handbags that have been making their way to the forefront lately. And technology companies have to respond to that, and we already have the first foldable smartphones. I’m talking about luxury fashion, of course. I myself have a foldable phone precisely because I can carry it. mini Kelly by Hermes.

What actually makes up the price of fashion pieces? Apple for example, it sells its own leather covers on MacBook and wants 5290 CZK for them. That is already a relatively high price for a computer case, if we look at it from the perspective of classic functional cases. In your opinion, is this already a fashion piece, which can be perceived as, for example, cases from fashion houses such as Gucci, LV, Burberry and the like?

The price is made up to a certain extent by the material, the workmanship, the strength of the brand itself, the marketing costs, even for Kanye West to wear it at the right moment. For the product Apple for NOK 5290 is a relatively high price. Maybe for the average Czechs, but in other countries that have priority for these fashion giants is the price Apple cases are low. The purchasing power of the main markets is many times higher than the Czech one, and we tend to judge these prices only from our own point of view. For an average-earning person in richer countries, five thousand is a marginal item and he can easily afford a Hermes phone case, which he will throw away in six months. Five thousand is only two hundred Euro and you throw away 200 once or twice if you earn 200 thousand Euros per month.

One more question comes to mind. For example, Louis Vuitton has been trying to produce its own technological products in recent years. These are headphones, speakers and watches. What do you think about it? Should fashion houses really only design fashion or is that fine for you? What is the utility value of these products?

That they give you a sense of exclusivity. Luxury is first and foremost about status. About not belonging to the masses but to a privileged group of people who can afford to have something different from the masses. That’s why they make it, and believe me, it sells very well. Just like it did in 2006 with Motorola by Gabbana. That’s why today we have TechnoGym treadmills from Dior, as well as Dior Vespas or those headphones from Vuitton. That’s why the Vertu brand is trying to rise from the dead. Even Covid has helped the social scissors to widen more and over time the middle class will disappear completely. Many people have become very rich, which is why prices are skyrocketing and all this is sold quickly. Basically, there is a shortage of everything in luxury today. We must not judge it from our point of view. Vuitton itself trains its employeesance, that he must not judge anything from his point of view, because the customer has a completely different angle, as well as options, and often has unlimited options. However, this customer also wants headphones or a smart watch, but the Vuitton customer will never buy those from Apple, because for him, as for me, they are like a HM shirt. Therefore, he offers his customers these technologies to satisfy his requirements and to be able to buy those technologies where he wants to buy the things he uses.

Speaking of LV, this is a company that is quite fond of experimenting with technology. Worth noting is a bag that changes color using LEDs or a handbag with an integrated display that can be controlled using an app. Moreover, it is not only LV, but also, for example, the well-known trunk with diple from the brands Moncler and Rimowa. What is your own opinion on the use of technology in fashion? Do you think this is the future and will we encounter it more and more often?

I do not think. In fashion, it will always be first and foremost about the luxury of materials, cut and processing. I have the Rimowa suitcase myself and I have never been able to load the ticket into it. In short, it is prohibited and must not be functional. They are more like visions, let’s say the wishes of the fans. The sale of imaginary clothes in the online world already has a bigger future, which Balenciaga and Burberry have already guessed, and you can dress up your avatar luxuriously. Similarly, Dolce & Gabbana presented 9 models from the Genesis Alta Moda collection (so-called haute couture) also in virtual form in the online auction house UNXD. These NFTs sold for a total of $6 million last fall. As it seems, Italy’s Dolce Gabbana is definitely the biggest leader and pioneer in technologies associated with luxury fashion, which goes from Motorola to today’s NFT.

Please, I have one complaint and I would like to know your opinion. Both my wife and I have tried the packaging on iPhone from brands like LV, Gucci or Louboutin and I have to say that none of them lasted longer than 3 months. In contrast, a classic phone case from brands that make cases usually lasts longer than the phone itself. Why is that? Are fashion house cases something I shouldn’t actually use?

And what would be the point of a fashion house if something lasts you a long time? Then you wouldn’t buy anything new. The fashion business is based on the system that something is fashionable and therefore “in” for a certain period of time, and this is what generates colossal profits. The rich have to spend on something that they would otherwise do with that money. That’s why you buy a phone case and no one assumes you’ll want to use it for, God forbid, more than 3 months. We must not judge things from our point of view. A rich Indian or Chinese simply buys a package and throws it away in a month, that’s it.

It often happens that fashion house collections include accessories for products that are basically no longer current. Now that Moschino has sent out emails with this summer’s collection, it includes packaging for iPhone 12, which is already more than a year and a half old product and honestly, if someone pays €200 to €400 for a mobile phone case, it’s usually not a problem for them to always have the latest phone, what is it?

Fashion accessories are produced almost a year in advance. From the proposals themselves, often even longer, and this is due to the fact that technology companies, mainly Apple (because these brands usually don’t even make covers for the other phones) they are not connected to those fashionable corporations. That is, with the exception of some, and for those, on the same day as the new phone is presented, you will also find a new cover. For example, the mentioned LV, you will find it there in time.

Gallery #2 Vanek Filip interview with Filip Vanek Filip Vanek star stylist Filip Vaněk filip vanek and interview Filip Vanek star stylist Filip Vanek filip vanek interview interview with Filip Vanek filip vanek photo photo by Filip Vanek vanek filip fashion filip vanek filip vanek fashion vanek filip stylist Stylist Filip Vanek Enter the gallery

Recently, famous fashion pieces are starting to appear more and more in games, in the Metaverse and so on. What do you think about it?

I already talked about this a while ago, but I don’t play games, so I don’t need to dress up in the game. But there is already a generation that longs for it, again it is related to the division of humanity into rich and poor. It will be easier for people to buy a real LV bag online and put it on their avatar than in the real world. It will be the same with travel. Most people will put on their glasses and be by the sea, realistically it will be unattainable for them to actually fly there. That is why the technological world is developing in this direction. And Covid has greatly accelerated this fact, people today are close to sitting at home and being online for meetings. At the same time, three years ago this would have been unthinkable. In covid, it was common for most people to sit at home in sweatpants and a handful of people to buy luxury fashion and travel to party on islands where there were no restrictions. Well, these people will never want a Balenciaga sweatshirt in some digigame.

Filip, thank you very much for the interview and I appreciate you taking the time to talk to me. Please tell me your favorite fashion apps.

Fashion applications? What is Romane? My favorite applications are diamond brooches applied to jackets or shopping in Montenapole.one. No amount of clicking and having a package delivered to my house can replace that. Unwrapping a paper box is simply not the same experience as getting drunk on champagne and buying outrageously expensive sneakers that I won’t see anyone else wearing.