The post-Olympics blues might be setting in for sports lovers, but Apple (NASDAQ:AAPL) fans have a big event just around the corner.
The highly anticipated iPhone 16 launch is slated for September, and according to Wedbush analyst Daniel Ives, it’s set to put in motion some big growth at the tech giant.
Ives notes that recent checks in Asia have strengthened his belief that “this upgrade cycle will kick off a long awaited renaissance of growth for Cupertino over the next year.”
Ives now thinks the initial iPhone 16 shipments will be nearer the 90 million+ mark compared to original Street expectations in the range between 80 million to 84 million. In fact, with Ives reckoning that around 300 million iPhones across the globe have not upgraded in more than 4 years, he believes this upgrade cycle could turn out to be one for the history books. “In our view Apple could sell north of 240 million iPhone units in FY25 as this AI driven upgrade cycle takes hold,” he went on to say.
Ives also makes the case that the Street is now finally starting to recognize how important Apple Intelligence will be in this ”consumer AI Revolution.”
Developers and major tech players (such as Meta and Google, who Ives thinks might be involved soon) will probably need to incorporate their AI models and technology into Apple’s ecosystem in the future. This is because Apple and its “golden iOS ecosystem hold the only keys to the castle of 2.2 billion iOS devices worldwide and 1.5 billion iPhones.”
Over the next 6 to 12 months, Ives anticipates hundreds of generative AI-driven apps will be built by developers. These will be crucial for Apple’s success, as its technology stack “creates the core building blocks of the consumer AI tidal wave we see coming starting with iPhone 16.”
Unsurprisingly, then, Ives rates AAPL shares as Outperform, while his $285 price target makes room for one-year returns of ~29%. (To watch Ives’ track record, click here)
Amongst Ives’ colleagues, 23 join him in the bull camp, 7 say Hold while one recommends a Sell, all adding up to a Moderate Buy consensus rating. At $248.78, the average price target suggests Apple shares will appreciate by ~12% over the coming months. (See Apple stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
