Prediction: Apple Will Stage a Major Comeback in the Next 5 Years. Here's 1 Reason Why.

Key Points

• Apple stock is roughly flat year to date.

• It has more than half of the U.S. market share for smartphones.

• Apple Intelligence is likely to play a large role in iPhone sales over the next five years.

• 10 stocks we like better than Apple ›

Apple (NASDAQ: AAPL) has been a laggard in tech lately. Not only is it trailing the other large tech stocks, it's trailing the market's gains, roughly flat year to date.

But don't give up on Apple so fast. It's had several moments over the past few decades where it lagged for years before booming again. And there are good reasons to be confident it can make another comeback. Here's one of them.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

The user favorite

Apple's most popular product is the iPhone, and it accounts for around half of Apple's total sales. Customers consistently upgrade when there are new launches, and even people who hold on for years eventually need to get a new phone for one reason or another.

Nearly all U.S. adults own a smartphone today -- 91% according to Pew research. Apple accounts for more than half of U.S. smartphones, which is a massive moat that's not easily overcome, no matter how much technology today is changing. If it is changing, Apple is usually leading.

Recently, users and investors alike have been disappointed in how Apple's artificial intelligence (AI) initiative, Apple Intelligence, is coming along, or more accurately not coming along. But over the next five years, it's likely to have its own breakthrough, and coupled with the iPhone's advantages of quality and ease of use, it should keep customers close to the brand. iPhone sales increased 13% year over year in the 2025 fiscal third quarter (ended June 28), demonstrating that despite its size and market share, the iPhone can still generate high sales. As the AI race speeds up, look for Apple Intelligence to boost iPhone sales further and for Apple to make a healthy comeback.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,872!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,092,280!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.