Apple has delivered superior returns over the long run, but it has faced some challenges recently.

The company is diligently working on overcoming these issues.

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Apple (NASDAQ: AAPL) has been one of Berkshire Hathaway’s (NYSE: BRK.A) (NYSE: BRK.B) best investments. The conglomerate first bought shares of the iPhone maker in 2016, increased its stake thereafter, and made it its biggest holding by 2017. Apple’s shares have produced incredible returns since, and even though the Buffett-led holding company has trimmed its stake in recent years, it remains Berkshire Hathaway’s largest holding.

However, some investors have been concerned about Apple’s long-term prospects following recent developments. Can the company still deliver solid returns? Let’s look deeper into Apple’s business and decide.

Image source: Getty Images.

Apple is one of the largest corporations in the world by market cap, but even well-established businesses face headwinds. The tech giant has encountered several challenges over the past few years. First, the buzz surrounding new iPhone releases has died down significantly since the early days of the device. The iPhone still makes up the lion’s share of Apple’s sales, so slowing revenue in that department substantially impacts the company.

Second, Apple is once again facing the threat of tariffs from the Donald Trump administration. The U.S. president has pursued an aggressive agenda in that department, sparking trade wars with some countries, especially China, where Apple has significant manufacturing operations. Apple could see margins and profits squeezed as a result. Third, some investors worry that the company’s long-term growth opportunities no longer look attractive.

While its similarly sized tech peers are taking full advantage of the ongoing artificial intelligence (AI) revolution, Apple has lagged most of them in that area. And on top of all that, the company’s shares aren’t particularly cheap by traditional valuation metrics compared to its similarly sized peers, despite lagging all of them in revenue growth.

AAPL PE Ratio (Forward) data by YCharts

These challenges make the stock fairly risky and unattractive, or at least, so the argument goes. Is Apple still a buy?

It’s worth noting that Apple continues to deliver financial results that, although not exceptional, often come in ahead of analyst estimates. In the fourth quarter of its fiscal year 2025, ending Sept. 27, Apple’s revenue increased by about 8% year over year to $102.5 billion. The company’s earnings per share climbed 13% year over year to $1.85. Apple credited strong demand for some of its latest models, including the iPhone 17, for the results. The company set a September quarterly record for iPhone sales.