Clearly, investors are betting that Apple's new AI iPhone will reinvigorate sales and lead to earnings growth. If you believe in this thesis, now could be a time to buy the stock. Because if sales keep stagnating, the stock will not do well starting at a P/E of 34. Perhaps this is why Warren Buffett is unloading his Apple position right now.

Apple’s annual product launch Monday failed to immediately capture the hearts of investors, as shares of the world’s biggest company slumped during the event largely focusing on previously rolled-out artificial intelligence features coming to iPhones.

Apple held its annual September iPhone event, which included the launch of the iPhone 16 line-up. As we predicted, Apple spotlighted the iPhone 16's AI capabilities and the upcoming features of Apple Intelligence.

The new iPhone 16 lineup will get its first batch of generative AI features next month through a software update. It appears that the company will be gradually introducing AI tools from its Apple Intelligence suite of generative AI features as it looks to make a dent in an emerging smartphone niche that's expected to take off big-time in the long run.

Thanks to the impact of the European Union’s Digital Markets Act, Apple has taken the drastic decision to remove its generative AI software suite—the clunkily backronymed Apple Intelligence—from every iPhone in Europe.