Apple is falling behind in artificial intelligence (AI) but iPhones remain popular. The company partnered with Alphabet to enhance iPhone features with AI. Despite strong iPhone demand, Apple stock is down 3% this year. While recent earnings beat expectations, growth needs to be consistent to justify the stock’s high price.

Apple reported strong demand for iPhones, leading to a 16% revenue growth. CEO Tim Cook stated demand was “staggering,” with an increase in active devices to 2.5 billion. Users are holding onto phones longer, potentially awaiting new AI features. A partnership with Alphabet aims to enhance Siri with AI capabilities.

While Apple’s recent earnings were strong, the stock is down 3% this year. The company needs consistent growth to justify its high price. Apple’s revenue increased by just 6% in the last fiscal year. Despite impressive results, there are better growth stocks to consider than Apple in the current market conditions.

Considerations before investing in Apple include its recent earnings performance, potential for consistent growth, and competition from other growth stocks. The Motley Fool Stock Advisor team identified 10 top stocks for investors, with Apple not making the list. Past recommendations like Netflix and Nvidia have shown significant returns for investors.

Read more at Nasdaq: Is Apple Still a Good Growth Stock to Own in 2026?