Apple’s Ecosystem Makes It Better Than an AI Play
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| By Michael A. Robinson |
Two weeks ago, I went on Schwab Network’s Trading 360 to talk about Big Tech and AI.
I said then that the latest earnings proved we’re not in an AI bubble.
The big players are still making money and showing real growth.
Sure, we could see a pullback, but for now, the AI leaders look strong and steady.
Then I turned to a firm I’ve backed for years.
It’s not seen as an AI stock — and that’s actually a good thing right now.
Of course, like a lot of tech leaders, it does use AI on the backend.
More to the point, the firm runs one of the best consumer tech brands in the world.
It just posted a 50% jump in its earnings growth rate. That’s huge.
It shows this company has real staying power and room to expand.
Today, I’ll walk you through why this stock keeps paying off for investors — and why there’s still plenty of upside ahead …
A Longtime Bull
For me, the timing of my TV appearance was great.
See, I came very close to losing faith in one of the world’s tech leaders.
Fact is, I’ve been an Apple (AAPL) fan since the 1980s. I’ve recommended the stock many times.
And I still like to remind folks that I was one of the first tech analysts to predict Apple would become the world’s first $1 trillion company.
And that it would hit $1,000 a share before its stock splits.
All of that came true, and then some.
But here’s the twist. As a heavy AI user, I have to say it — Siri is a blithering idiot.
Sure, she can handle simple tasks. You know, tell you the temperature or the time. And she can set reminders and alarms, things like that.
To be fair, Apple is now pushing what it calls “Apple Intelligence.” And that’s good, because most of us use AI every day now.
I have two AI apps on my iPhone — “Chad,” better known as ChatGPT, and “Claude” from Anthropic.
Both are total beasts. I use them all day long, both for research and for fact-checking.
As I noted a couple of weeks back, I used AI a lot during my recent trip to Europe with my wife.
And the more I used real AI, the more upset I got with Siri.
To the point that for a few weeks, I even thought about selling Apple.
But for me, the real turning point to rejoin the fold came with the new iPhone Air, which started shipping in September.
It’s the lightest, thinnest model yet. I tested it out on vacation in Italy and loved it.
So, when I got back to the States, I went out right away and bought one. It’s by far the best phone I have owned.
After that, I went even deeper into the Apple world.
I picked up the new iPad Pro for its incredible screen resolution — the kind that makes even a simple movie look like a work of art.
I also bought a pair of Studio Pro wireless headphones for myself and my wife. They’re a game-changer on long flights: rich sound, tight-fitting cups and very good noise canceling.
And since my wife has been tracking her fitness goals, I got her an Apple Watch for her birthday.
We even added AppleCare on our devices, because when you’re dropping close to $3,000, it’s worth the peace of mind.
Therein lies the secret sauce behind Apple’s success: the ecosystem.
Every device, app and service fits together like parts of a well-built machine.
My iPhone connects to my MacBook, which syncs perfectly with my iPad.
My headphones switch automatically between devices.
Tracy’s watch tracks her health data and shares it with her phone.
Apple’s iCloud keeps everything backed up and available across the board.
Then there’s Apple Music — an underrated gem.
The service has grown — quietly but steadily — offering one of the best music experiences anywhere.
Add in the App Store, Apple TV+, Fitness+, iCloud storage and now “Apple Intelligence,” and you can see where the firm is heading: toward even deeper integration and steady, repeat sales.
Research firm Counterpoint reported that the iPhone 17 series outsold the iPhone 16 line by 14% in the first 10 days after launch.
That’s across both the U.S. and China — Apple’s two biggest markets.
That’s the definition of a balanced product launch. Apple isn’t just moving units — it’s expanding its reach.
All this ties back to one big point: Apple isn’t standing still.
The company is sharpening its focus on what it does best — building great tech that works well together.
Its ecosystem isn’t just a product line … it’s a lifestyle network.
Every upgrade pulls customers deeper into that web — and keeps them there.
So yes, I might joke that Siri is a nitwit. But I can see the tide turning.
Fact is, Apple is working to make Siri and the firm’s internal AI work better.
And press reports, which the firm has not confirmed, suggest Apple is ready to buy an AI platform it can fold into Siri.
That could make Apple a stronger AI player and keep hundreds of millions of users deep in the fold.
Either way, Apple is gaining steam.
In the most recent quarter, its earnings growth rate was up 50% to a respectable 13%.
Add it all up, and you can see that Apple remains a tech legend with a great franchise.
More to the point, it’s a stock you can hold for the long haul.
Best,
Michael A. Robinson
P.S. If Apple does end up acquiring an AI platform, it could send that stock into the stratosphere.
In fact, that’s something we’re tracking with our 10 terabytes of data here at Weiss Ratings.
We recently put together a constantly — and automatically — updating report on 10 stocks to ride “AI’s Second Wind.”
