David Jagielski, The Motley Fool

Wed, May 21, 2025, 3:23 PM5 min read

• An Apple executive recently testified at Google's antitrust case, and admitted that iPhones may not be needed in 10 years.

• iPhone sales account for approximately half of Apple's top line.

• Artificial intelligence (AI) could result in a shift in users relying more on wearable devices.

• 10 stocks we like better than Apple ›

Apple (NASDAQ: AAPL) has been one of the best stocks to own over the past five years on the stock market, rising more than 160% during that time frame. As of Monday's close, its market cap was just over $3.1 trillion, making it one of the most valuable companies in the world. The success and strength of its business revolves around its iPhones and iPads, as well as the ecosystem of its other products and services.

But what if something happened that disrupted that dominance? One of Apple's own executives admitted that there could be trouble ahead for the business, and may have provided investors with a reason to think twice about owning the stock for the long term.

The world of tech is changing rapidly due to advancements related to artificial intelligence (AI). And that can mean the devices that people use today may become obsolete within the next five to 10 years.

Eddy Cue, the senior vice president of services at Apple, testified at the antitrust case against Google (which Alphabet owns), stating that even the company's iPhones may not be crucial due to changing AI trends: "You may not need an iPhone 10 years from now." Cue believes that AI-powered wearable devices, such as smart glasses, could take the place of today's smartphones.

For Apple, that means both opportunities ahead and also some significant challenges. Consider that during the first three months of 2025, the company's net sales totaled $95.3 billion, and iPhone revenue accounted for roughly half of that, at $46.8 billion. The company has already faced difficulties in growing that area of its business, as iPhone sales rose by just 2% in the most recent quarter.

A longer-term trend that gives consumers more of a reason to ditch the iPhone certainly wouldn't help matters for Apple. The company would have to rely on innovation and potentially coming out with something new. And unfortunately, that hasn't exactly been a strong point for the business in recent years.

Apple has been lagging behind other companies when it comes to AI. It has delayed its Apple Intelligence features that it was planning to roll out for iPhones this year, which will now be slated for 2026. While some AI features are available, including summarizing emails and webpages, more advanced ones such as using Apple's Siri assistant for multiapp requests that involve multiple steps won't be available until next year.