Apple’s strong iPhone revenue growth is seen as a result of its AI efforts, but the reality is more complex. Despite improvements, the AI tools don’t look much different from when they were launched in 2024. The real driver of iPhone sales is overdue upgrades – with IDC reporting a 5% growth in unit sales to 81.3 million devices. The average age of iPhones in consumers’ hands is over four years, signaling a significant upgrade opportunity. A supercycle of demand is on the horizon, driven by consumers needing new phones rather than advanced AI features. Analysts predict ongoing iPhone shipment expansion through 2027, setting the stage for a potential supercycle.

While Apple’s AI offerings will play a role in future demand, other challenges like increased competition and tough year-over-year comparisons exist. The stock’s gains have already priced in much of the growth from the impending iPhone sales supercycle. Despite this, the stock’s current value may still underestimate the potential upside of the iPhone upgrade cycle that’s already underway. Apple stock has seen a pullback since early December, making it a solid buy before its first-quarter numbers were released. The Motley Fool Stock Advisor team identified the 10 best stocks to buy now, and Apple didn’t make the cut. The top 10 list has historically produced significant returns, with Stock Advisor boasting a total average return of 932%, outperforming the S&P 500. Investors are encouraged to join this investing community for individual investors to access the latest top 10 list and potentially capitalize on market-beating returns.

Read more at 1. SpaceX successfully launches 60 Starlink satellites into orbit. The launch marks the 27th mission for the Starlink program. – Reuters

2. Tesla announces plans to build a Gigafactory in Texas. The new facility will produce Tesla’s Cybertruck, Model Y, and Model 3 vehicles. – CNBC

3. Apple reports record-breaking revenue of $111.4 billion in the first quarter of 2021. iPhone sales saw a 17% increase from the previous year. – Wall Street Journal

4. Amazon announces plans to hire 3,000 new employees in the Boston area. The new hires will work in fields such as cloud computing and machine learning. – CBS MarketWatch

5. Facebook faces backlash for its decision to temporarily ban news content in Australia. The move was in response to a proposed law that would require tech companies to pay for news content. – Barchart: Apple’s Surging iPhone Sales Aren’t Really About AI…and That’s a Good Thing