The Apple We Need Isn't The One We've Got

First off, we won't have chat this week as we are on the road, on very different time zones, and very, very busy. We'll be back in the saddle next Wednesday so we should have chat at the normal time then.

Also, we wrote the below article regarding Apple which we meant to send out Sunday night before the event on Monday. It turns out that essentially everything we said came true, and all of our analysis regarding the company still holds true, so we wanted to go ahead and send it along to you all.

Plus, here's a photo of Cody and Bryce in Abu Dhabi before Cody presented on the concepts of Revolution Investing!

Since Steve Jobs' passing, innovation at Apple can be summed up in one word: "incremental." Next week, Apple is set to unveil its latest products, including the iPhone 16, a new Apple Watch, upgraded AirPods, and a refined Mac Mini.

Unfortunately, we only expect more "incremental" improvement from Apple at Monday's "It's Glowtime" event. Importantly, Apple's latest products will likely be the first to incorporate Apple Intelligence which the company presented at WWDC in June 2024.

We published a deep dive on Apple Intelligence for MarketWatch readers shortly after WWDC.

We are not expecting any Revolutionary new products or product changes at next week's event. The iPhone 16 will likely have better cameras, a little more battery life, a slightly better screen, and perhaps a few nifty AI features (including an improved Siri). That's fine for now, but at some point, Apple needs to start truly innovating again if its stock is to outperform for the next decade.

Especially given the stock's current valuation (trading at a 33x 2025 earnings estimates), we are worried that Apple's stock could go sideways for many years if it doesn't return to double-digit revenue growth sometime soon.

Why do we have so little confidence that the iPhone 16 and Apple Intelligence will lead to amazing growth for Apple in the next year or two?

Let's break it down.