How investors will react to Apple (AAPL) expanding AI-driven audio with new AirPods Max 2

• Earlier this month, Apple announced AirPods Max 2, H2-powered over-ear headphones with enhanced noise cancellation, studio-style recording tools, and new AI-powered features. Priced at $549, it will be available in multiple colors starting in late March.
• By combining AirPods Max 2 with expanded on-device AI capabilities and creator-focused tools, Apple is deepening its commitment to the entire hardware, services, and content ecosystem.
• We then consider how this push into AI-enhanced audio and creator tools could impact Apple’s investment story around services and hardware.

We’ve uncovered 12 dividend fortresses yielding 5% or higher that will not only withstand market storms, but thrive during them.

Apple investment story summary

I think owning Apple requires believing that its large installed base, premium hardware, and ever-growing services can continue to work together to drive steady, profitable growth. AirPods Max 2 fits into that story as another device that ties advanced on-device AI to content creation, but it doesn’t fundamentally change the near-term service catalyst or the key risks around regulation, pricing, and hardware saturation.

What feels most relevant to AirPods Max 2 is Apple’s broader commitment to AI-powered experiences, including upcoming Siri revamps and the “Ask Siri” feature. These moves point to a world where Apple intelligence and creator tools sit on top of premium devices like AirPods Max 2, potentially reinforcing demand for upgrades and deeper engagement across music, podcasts, games, and other services over time.

But even with these AI enhancements, investors shouldn’t ignore the growing regulatory pressure on Apple’s services margins and how that could impact it.

Read the full story on Apple (it’s free!)

The Apple story predicts sales of $477.4 billion and profits of $133.6 billion by 2028. This would mean a 5.3% increase in annual revenue and approximately $34.3 billion in profits from the current $99.3 billion.

We reveal how Apple’s projections yield a fair value of $295.44, 17% higher than the current price.

explore other perspectives

Some of the most optimistic analysts already expect Apple to reach around US$503.3 billion in sales and US$142.6 billion in revenue by 2028, and the latest AI infusion could either confirm that more positive view or expose its risks, depending on how the company weighs vertical AI integration against the very real threats of tighter app store rules and weakening ecosystem lock-in.

Explore 96 other fair value estimates for Apple – Find out why the stock is worth 30% less than its current price.

Create your own verdict

Don’t agree with the existing narrative? Following the herd rarely yields exceptional investment returns. Follow your intuition.

• A great starting point for Apple research is an analysis that reveals two important perks that can influence your investment decision.
• Our free Apple research report provides comprehensive fundamental analysis compiled into a single visual (snowflake), making it easy to assess Apple’s overall financial health at a glance.

Does Apple have a chance?

Now may be the best entry point. These pickups are from daily scans. Don’t delay:

This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

Do you have feedback on this article? Interested in its content? Please contact us directly. Alternatively, email editorial-team@simplywallst.com.