Apple’s release of its iPhone 16 family of smartphones next week is expected to start the “biggest upgrade cycle” in the company’s history on the back of its artificial intelligence strategy, Wedbush Securities analysts wrote in a note to clients on Friday.
The technology giant is expected to unveil the latest AI-driven model of iPhone on Monday, with Wedbush estimating the company to ship “closer to” 90 million-plus units versus Wall Street’s original projections of between 80 million units and 84 million units. The brokerage said roughly 300 million iPhone users around the world haven’t upgraded their devices in more than four years.
Wedbush expects the price of iPhone 16 to be similar to the previous model, as Apple wouldn’t want to lose potential upgrades and moves to AI due to pricing issues. “We believe the demos at the event in Apple Park will be eye opening and speaks to the broader strategic vision for consumers looking to upgrade to iPhone 16,” Wedbush analysts led by Daniel Ives said in the Friday note.
China is expected to see improving and accelerating growth, according to the Wedbush report. “In our view, Apple could sell north of 240 million iPhone units in (fiscal 2025) as this AI-driven upgrade cycle takes hold,” Ives said.
MacDailyNews Take: If Wedbush is correct, The Mother of All iPhone Supercycles™ looms!
MacDailyNews Note: Wedbush maintained its “Outperform” (buy) rating on Apple (AAPL) shares and reiterated its 12-month price target of $285.
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