Mark Zuckerberg May Be Right About Apple's Lack of Innovation. But Here's Why That Shouldn't Matter to Investors.

Core Viewpoint - Meta Platforms' CEO Mark Zuckerberg criticized Apple for its lack of innovation, suggesting that the company has relied on minor improvements rather than major breakthroughs in recent years [1][3]. Company Performance - Under CEO Tim Cook, Apple has transformed into a company worth over $3 trillion, potentially on track to reach a $4 trillion valuation, despite facing challenges [2]. - Apple's product revenue declined by just over 1% in the most recent fiscal year, totaling nearly $295 billion, while services revenue rose by 13% to above $96 billion, indicating a shift in growth drivers [7][8]. Innovation and Strategy - Apple has struggled to produce groundbreaking innovations like the iPhone, with significant projects such as the electric car being abandoned after a decade of development [4][3]. - The company is focusing on expanding its services business as a long-term growth strategy, which may be more sustainable than relying solely on new product innovations [6][9]. Market Position - Apple has a massive customer base with 2.2 billion active devices globally, allowing it to grow in value without necessarily needing new product innovations [5]. - The company is taking a measured approach to investments, focusing on enhancing its services rather than rushing to launch new features, which may lead to more stable and consistent growth [10][12]. Investment Outlook - Despite being a high-priced stock with a market cap of $3.5 trillion, Apple is considered a solid long-term investment due to its vast user base and consistent profits [11][12].