What’s wrong with Apple now? – Archive Today: Financial Times

Even after the recent sell-off, the stock’s price/earnings valuation is a third higher than it was back in April. The sales growth and AI issues have come together: consumers have not demonstrated wild enthusiasm for AI-enabled phones in general, and the perception that Apple is lagging behind Android on that tech has grown. This casts doubt on the idea that AI will drive a big iPhone upgrade cycle. As Craig Moffett of MoffettNathanson research sums up: “Not only have we not seen any sign of an upgrade cycle … we have seen growing evidence that consumers are unmoved by AI functionality (not just Apple’s but indeed everyone else’s as well). Meanwhile, fully agentic AI, the foundation of any real bull case for Apple, seems further away now than it did even five months ago.”