Wall Street has slightly cooled on tech stocks in recent months, with the Nasdaq-100 Technology Sector down about 8% since Aug. 1. Excitement over expanding markets like artificial intelligence (AI) has cooled, while concerns over macroeconomic factors continue to grow. As a result, now is an excellent time to consider a long-term investment in a tech stock.

Apple (AAPL -0.65%) is an attractive option given its dominance in the consumer side of the market and growing venture in AI. The company has leading market shares in multiple product categories, and could have a winner with its recently launched iPhone 15. However, before you fill up on its stock, it's a good idea to get the most out of your investment by learning more about its business.

Here are three things about Apple that smart investors know. 

1. Apple stock is down 13% since Aug. 1

Apple shares tumbled 13% since the beginning of August after the company posted dismal third-quarter 2023 results. Last year's economic downturn seems to have caught up with the company, and it suffered declines in multiple product segments as marketwide trends show consumers are spending less on tech. 

Tumbles in Apple's iPhone, Mac, and iPad segments in Q3 2023 led to the company's third consecutive quarter of revenue declines as total net sales fell 1% year over year. The repeated dips in revenue have investors concerned as the holiday season approaches. If the company can't pick up steam during its busiest time of the year, revenue declines may continue into 2024. 

The good news is that Apple is not alone in its recent challenges. According to Counterpoint Research, U.S. smartphone shipments fell 24% year over year in Q2 2023. Meanwhile, global PC shipments decreased by 13% (per IDC). However, economic challenges won't last forever, and Apple is well-positioned to profit significantly from the market's inevitable recovery. As a result, a recent dip in its stock could be the perfect time to buy. 

2. Signs of strong iPhone 15 demand

Despite decreased sales for Apple's smartphones last quarter, the recently launched iPhone 15 is showing signs of high demand. Data from Counterpoint indicates that wait times for the base model iPhone 15 are almost double what they were a year ago for the iPhone 14. U.S. shoppers currently need to wait 10 days for the newest iPhone, compared to six days in 2022.

Moreover, Apple's most expensive version in its new lineup, the iPhone 15 Pro Max, looks to be winning over consumers. Wait times for the Pro smartphone are at 48 days, compared to 39 days for its predecessor this time last year.

Meanwhile, in China, Apple's largest overseas market, wait times for the base model iPhone 15 have quadrupled from last year. Counterpoint analyst Archie Zhang said, "We were expecting the base model iPhone 15 wait times in China to come in a lot lower -- maybe on par with last year." It's positive that Apple's offerings are attracting Chinese shoppers despite increasing competition from Huawei and other smartphone brands. 

High demand for the iPhone 15 could mean a return to revenue growth for Apple's smartphone business, making its stock an attractive option ahead of its Q4 2023 earnings release. 

3. Heavily investing in generative AI

Apple's research and development spending increased by more than $3 billion last quarter, hitting nearly $23 billion. CEO Tim Cook told Reuters in early August the increase was primarily due to a ramp-up in research on generative AI. The company has reportedly built a framework for developing large language models and has produced its own version of OpenAI's ChatGPT, which engineers call Apple GPT.

The tech giant's expansion in AI has gradually shown up in the form of AI-enabled features across its product lineup this year.

A revamp to the iPhone's autocorrect uses a language model to more accurately learn how users text. Meanwhile, improvements to Siri, photos, and search are using the technology to enhance user experience. Even the company's AirPods Pros have introduced an AI-driven feature that automatically turns off noise canceling when wearers engage in a conversation. 

Apple appears to be playing the long game in AI by gradually sprinkling the technology across its products. However, its dominance in tech and brand loyalty among consumers could make its stock an excellent way to back the burgeoning industry.