The verdict is in. Even though Apple (NASDAQ:AAPL) has said the iPhone XR is the company’s best selling model right now, there is an overwhelming amount of data suggesting that Apple simply isn’t selling that many more new iPhones this holiday season relative to last year. Namely, Apple has perhaps not coincidentally decided to stop reporting iPhone sales figures, smartphone suppliers of all shapes and sizes are cutting their guides, search interest related to the new models is unusually weak, and analysts across the board are trimming iPhone estimates for the next several quarters.

In other words, we may have finally reached peak iPhone. While that may seem like a reason to stay away from Apple stock even after this recent selloff, it’s not. Peak iPhone is priced in. At just 13 forward earnings, Apple stock doesn’t need robust iPhone unit growth to warrant its valuation.

Instead, all AAPL stock needs to head higher is for iPhone average selling prices to keep tracking higher (they are), new hardware products to keep expanding their reach (they are) and the red-hot Services business to stay on its robust growth trajectory (it is). All together, then, Apple stock has all it needs to head higher from currently depressed levels, and do so even amid flattish iPhone unit growth.

That doesn’t mean a rebound is going to happen right away. Instead, history says this selloff has a few more percentage points to the downside over the next few months. Plus, this stock needs some positive catalysts on the trade front in order to really reverse course and head sharply higher.

But, this selloff will inevitably and eventually end, and when it does, Apple stock has all the firepower it needs to roar back to all-time highs.

Peak iPhone Is Here

Over the past decade, the single biggest driver for Apple stock has been the iPhone. It was the company’s biggest invention ever, and it has since become the world’s most used electronic device. Over the course of its 11-year history, the iPhone has done nothing but become bigger, better and more popular, and that has helped Apple transform into the world’s most valuable company.

But, those days are over. The reality is that almost everyone who wants a smartphone, already has one, and that smartphone ecosystems across the board are generally so good, that once you’re in an ecosystem, you don’t want to leave. If you’re an iPhone guy, you’re an iPhone guy, and if you’re an Android guy, you’re an Android guy. The net result is that the pool of new smartphone buyers is rapidly falling, and so is the number of so-called “switchers.”

Thus, new iPhone sales are now mostly driven by upgrade buyers, which is by definition a finite pool. Even if everyone upgrades in a single year, without new smartphone or switch buyers, iPhone unit growth will be null.

That is where we are today. Last quarter, iPhone unit growth was 0%.

It is also where we will be for the next several years. iPhone demand this year is down. Smartphone suppliers of all shapes and sizes are cutting their holiday quarter guides. Search interest

trends indicate that there has been a multi-year downtrend in search interest related to new iPhone models, culminating in unusually low search interest for the XR and XS. And, even the most bullish analysts are trimming their iPhone estimates for Apple over the next several quarters.

As such, it’s safe to say that we are at peak iPhone. Ostensibly, that is a bad thing for AAPL stock. But, upon closer inspection, it really isn’t that much of a negative, especially at current levels.

It Doesn’t Matter for Apple Stock

For the past several quarters now, Apple has been transitioning away from an iPhone business to a multi-faceted hardware and software business.

Just look at last quarter’s numbers. iPhone revenue growth was flat. But, new hardware revenue (classified under “Other Products”) rose more than 30% year-over-year and is now about a tenth the size of the iPhone business. This business will only keep growing, as new products like Apple Watch, AirPods and Apple TV gain mainstream traction. Meanwhile, adjusted Services revenues rose nearly 30% year-over-year, and that high-margin software business is now about a fourth the size of the iPhone business. This business, too, will only keep growing as the company continues to monetize its already huge installed user base.

Moreover, while iPhone unit sales were flat last quarter, iPhone revenue jumped nearly 30% higher powered by robust average selling price growth. This trend will persist, because smartphones are so important to consumers in their everyday lives that they will find a few extra bucks each year to pay higher prices for the newest model.

Overall, Apple stock still has growth firepower. Granted, iPhone unit growth is all dried up, and it isn’t coming back any time soon. But, iPhone average selling prices are heading higher, new hardware products are ramping quickly and the software business continues to grow rapidly. All together, that is more than enough growth to push Apple stock higher from current levels, which are characterized by an anemic 13 forward multiple.

Bottom Line on AAPL Stock

Apple stock is a long-term winner being dragged down by near-term peak iPhone concerns. But, those concerns are overstated, and from current levels, Apple stock doesn’t need robust iPhone growth to head higher.

To be sure, that doesn’t mean this selloff in Apple stock is over. Prior selloffs have been much larger and lasted much longer, and this stock needs a positive catalyst on the trade front to truly turn the tide. But, this does mean that this is a stock worth slowly cost-averaging into as it keeps dropping.

As of this writing, Luke Lango was long AAPL.