Apple Inc. (NASDAQ:AAPL) is known for underpromising and overdelivering. Tim Cook, the chief executive of the company, has done the opposite.
Sarah Kunst, managing Director at Cleo Capital, says that’s a major reason why AAPL stock has been falling in recent weeks.
Apple phones do not have artificial intelligence in the extent that was promised to customers last year. The subsequent weakness of the tech stock taught “Tim Cook an important lesson: he is not Elon Musk or Sam Altman.”
Kunst was referring specifically to Musk, who has promised full self-driving technology for years but has yet to deliver.
Apple lagging in AI doesn’t matter much
Apple’s stock price has been suffering a significant decline this month, partly due to the narrative that the iPhone does not have AI.
Sarah Kunst said that this narrative isn’t completely true in her interview last week with CNBC, adding, “Of course Apple has AI. What do you think Siri means?”
Apple isn’t even a software company, so it’s unfair to expect the multinational to compete with Google in the AI arena.
She added that even if the company failed to deliver great AI by the deadline, it was “not necessarily a big issue”.
Apple will continue to enjoy strong sales
Sarah Kunst, CleoCapital, is still convinced that AI features will not hinder iPhone or MacBook sales.
She argued that “there is no real competitor in the US for the most part,” on “Worldwide Exchange.”
During the interview, Kunst urged investors to focus on AAPL’s progress in chips and hardware since “that’s what they make money from.”
Apple shares are currently trading around $213. The Nasdaq listed company’s shares are also worth buying now because of the 0.47% dividend yield.
What other experts have to say about AAPL
Sarah Kunst is not the only one who remains bullish on Apple following the recent pullback.
Nancy Tengler, of Laffer Tengler Investments, also recommends buying AAPL at a dip. It has a track record of proving to be a profitable position if purchased on weakness.
She cited the “Apple Maps disaster” and “earnings caution in January 2019”, both of which had a significant impact on the share price of the company.
Apple stock has risen 1,100% against the former and around 550% against the latter. This suggests that “you can step in this name when it disappoints you market,” she concluded.
Dan Ives a senior Wedbush Analyst, expects AAPL to reach a new high in the fourth quarter of 2025.
This post Apple’s stock price decline taught Tim Cook an important lesson: what follows may change as updates unfold
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