Apple (AAPL 0.41%) has long had a reputation for offering investors consistent growth, with its stock up 243% since 2018. The tech giant has become the most valuable company in the world, achieving a market capitalization of $3 trillion earlier this year. However, its stock has slipped since the company released the earnings report for its fiscal 2023's third quarter, ended July 1.

As with many companies in consumer tech, macroeconomic headwinds have plagued Apple product segments as reductions in consumer spending have caused repeated revenue declines. However, poor market conditions won't last forever, and Apple's dominating brand is likely to grant investors substantial gains over the long term. 

Here's why Apple's stock is a screaming buy after a recent dip.

A stock sell-off

Apple shares are down 9% since the start of August after the company released dismal quarterly results. In Q3 2023, revenue fell 1% year over year to $82 billion, marking the third consecutive quarter of slipping revenue. The tumble came as Apple experienced reduced sales in its iPhone, Mac, and iPad segments. 

Falling product sales have become a persistent issue across tech over the past year, with smartphone shipments sliding 24% year over year in Q2 2023. The declines led Samsung and Motorola to experience smartphone sales declines of 37% and 17%, respectively, while Apple's fell a more moderate 6%.

Meanwhile, the MacBook company similarly outperformed its peers in personal computing. According to IDC, global PC shipments fell 13% in Q2 2023. However, Apple achieved 10% sales growth in the quarter even as competitors like Lenovo Group and Dell Technologies suffered double-digit declines. 

Apple hasn't managed to avoid challenging market conditions completely, but its ability to consistently outperform its competitors strengthens its long-term outlook. The popularity of Apple's products has allowed it to charge a premium, safeguarding its business from the worst of the declines. Once the sector bounces back, its leading market shares across different product categories could pay off massively. 

Expanding in a $137 billion industry 

Artificial intelligence (AI) has become the leading driver of growth in the stock market this year. Data from Grand View Research shows the industry was worth about $137 billion in 2022 and is projected to expand at a compound annual rate of 37% through 2030. Apple is slightly late to the party, with companies like Microsoft and Amazon taking the lead. However, the iPhone maker has the dominance in tech and brand loyalty among consumers that could attract millions of users to its future services. 

In Q3, the company spent $23 billion on research and development, an increase of about $3 billion from the previous year. CEO Tim Cook revealed in an earnings call that the rise is primarily due to its growing venture in generative AI. The company has reportedly built a custom framework for creating large language models and developed a platform similar to OpenAI's ChatGPT, which engineers have nicknamed Apple GPT.

Moreover, Apple is gradually introducing AI-enabled features across its products. In June, the company debuted an overhaul of the iPhone's autocorrect, which uses a language model similar to ChatGPT to learn a user's texting style. Meanwhile, AirPod Pros will soon automatically turn off noise canceling once the wearer engages in a conversation. 

Apple's stock dip has pushed its forward price-to-earnings ratio below 30 for the first time since June. While the stock isn't exactly a bargain buy, it rarely goes much lower. As a result, it's not a bad idea to consider buying the dip. Product sales are likely to recover alongside easing inflation over the next year. Additionally, buying Apple shares while it's still relatively early days for its venture into AI could offer substantial gains over the long term.