Is Apple Still a Smart Investment in 2025?

Apple ($AAPL) has long been a favorite of investors.. and for good reason. Over the past decade, the stock has delivered over 500% returns, cementing its place as one of the most successful investments of the modern era.

But 2025 is a different story. Year-to-date, AAPL is down nearly 20%, and its latest product announcements have fallen flat with both consumers and the market. Naturally, this leads many to ask me the same question:

"Is Apple still worth owning?"

The answer, as with most things in investing, isn’t a simple yes or no. It depends on what you’re looking for.

The Innovation Question

One of the most common criticisms from Apple bears is: “Does this company even innovate anymore?”

This week’s WWDC 2025 didn’t do much to silence those critics. The software updates were largely cosmetic refinements to the user interface, rather than groundbreaking changes. One useful feature was live translation for calls and texts, but even that felt more like catch-up than innovation. Many competitors already offer similar tools.

What’s more disappointing is the lack of emphasis on Apple Intelligence. Back in early 2024, I predicted Apple would make a major push to integrate AI into its hardware, triggering a potential new growth cycle. That never happened.. at least, not in a meaningful way.

Liquid Metal - preparing us for Apple Glasses?

We now know Apple officially abandoned its car project over a year ago. That stung. A car would have been a bold, fresh product line, even though we can all agree it would have been very risky. Chinese smart phone manufacturer Xiaomi has pivoted to making cars, so who's to say Apple couldn't do the same?

Instead of a car, Apple pivoted to the Vision Pro headset, which has been underwhelming to say the least. It’s heavy, awkward, and expensive. Also, based on user feedback, many early adopters regret their purchase.

Now Apple is teasing a new design language called Liquid Glass, which may hint at something more promising, perhaps a sleek pair of AR glasses, akin to Meta’s Ray-Ban smart glasses. Now the Liquid Metal connection to glasses is only a rumor, but it sounds good, doesn't it? We at least know that according to reports from Bloomberg, Tim Cook has made beating Meta to market with consumer-friendly AR glasses a top priority.

Could this be the next breakthrough product that reinvigorates Apple’s innovation cycle? Maybe. If they can combine functionality (translation, maps, music) with Apple’s signature design, it could resonate. But that's still a big “if.”

The Ecosystem Still Matters

Despite the lack of innovation, one thing hasn’t changed: the strength of Apple’s ecosystem.

Like many other iPhone, I’m not switching to Android anytime soon. My photos, apps, and data are all in iCloud. The hassle of migrating away keeps me, and millions of others, locked in. That network effect is powerful and valuable.

But here’s the issue: Is that worth a 30x P/E ratio?

For a company growing at low single digits, the valuation looks stretched. Apple isn’t likely to lose its loyal base, but the days of frequent hardware upgrades are behind us. Without a new and exciting product to fuel growth, it’s hard to justify the premium valuation.

What I’m Doing with My Apple Shares

I’m not buying more Apple stock right now, but I’m not selling any of my shares either.

Most of my position was built aggressively between 2010 and 2019. It’s been a great investment. But with growth slowing and little near-term excitement, I’m content holding my shares and using them to generate cash flow through options.

Specifically, I sell covered calls on my AAPL shares, collecting monthly premiums. That earned income goes straight into buying my high-conviction stocks.. like $NBIS or $HIMS, for example.

Interestingly, Goldman Sachs maintains a Buy rating on AAPL, with a $253 price target. They’re bullish on an upcoming iPhone replacement cycle in 2025–2027, which they believe could reignite demand.

That may play out, but for now, I prefer to be cautious and income-focused.

Final Thoughts

Apple may not be the innovation powerhouse it once was, but it's still one of the most successful companies in the world and the numbers prove it.

In 2024 alone, AirPods generated an estimated $22 billion in revenue. To put that in perspective, that’s more than Spotify’s total revenue and almost as much as Block (Square) made across all its platforms. AirPods, a single product line, is outperforming entire companies.

But it’s a mature business that priced like a high growth company.. and that’s the issue.

If you’re looking for massive upside, this may not be the best time to load up on AAPL. But if you already own it, using the stock to generate income while watching for signs of a real innovation cycle is, in my opinion, a smart play.

Let’s see if those AR glasses become Apple’s next iPhone moment or just another Vision Pro flop.