KEY TAKEWAYS
- Apple is positioned for a strong growth cycle driven by artificial intelligence, according to Wedbush analysts who increased their estimates for iPhone 16 shipments.
- The analysts lifted their estimates to 90 million based on recent Asia market checks and and estimated 300 million iPhone users who may be ripe for device upgrades.
- The iPhone 16 is expected to launch in September, with Apple Intelligence features to follow.
Apple’s (AAPL) artificial intelligence-fueled growth cycle could be stronger than expected, according to Wedbush analysts who lifted their iPhone 16 shipment estimates based on their outlook for Asian demand.
The analysts wrote that “recent Asia checks this week are giving us more confidence this upgrade cycle will kick off a long-awaited renaissance of growth for Cupertino over the next year.” Apple has struggled amid increased competition and pricing pressure in the China market but has recently indicated that discounting efforts could be paying off.
Wedbush analysts increased their estimates for iPhone 16 shipments to at least 90 million, higher than Street expectations of between 80 million and 84 million, citing “more indications across the Asia supply chain this iPhone upgrade cycle.” Roughly 300 million iPhone users have not upgraded in the past four years, the analysts said.
They highlighted the anticipation building around the iPhone maker’s AI opportunity with the Apple Intelligence-powered iPhone 16. The device is expected to launch in September with AI updates to roll out later.
AI integration into Apple devices and associated monetization opportunities could add $30 to $40 per share for investors, the analysts wrote.
Apple shares were recently up about 1% in Monday trading. The stock has gained about 13% year-to-date amid recent pressure driven in part by news that Warren Buffett’s Berkshire Hathaway (BRK.A) cut its stake in the company.
