Apple has recently experienced a "strong demand start" for its iPhone 16 during the weekend. This positive trend reinforces the outlook of Wedbush Securities, which suggests that the technology giant is on track to break its historical record for iPhone unit sales within a year and achieve a staggering market capitalization of $4 trillion by 2025.
According to the brokerage's forecasts, iPhone 16 sales are expected to increase by high single digits and may reach double digits beginning with the December quarter, as indicated in a client note released on Sunday. Analysts at Wedbush anticipate that the much-anticipated artificial intelligence features associated with the new iPhone will be rolled out in phases over the upcoming months.
As per the analysis by Wedbush, "This is the beginning of an AI-driven iPhone supercycle that should enable Apple to break its historical mark for iPhone units in a year and translate into a $4 trillion market cap for Cupertino in 2025," as highlighted by Daniel Ives and his team. Recent checks on the Asian supply chain have led the brokerage to forecast that the iPhone 16 upgrade cycle could initiate sales exceeding 90 million units.
They predict this will represent an increase of approximately 8 to 10 million units compared to the iPhone 15, suggesting that demand has been "tracking well" on a global scale. In fiscal 2025, Apple is projected to sell over 240 million units, supported by a strong performance during the December quarter, according to Wedbush's insights.
Focusing on its essential market in China, Apple is expected to see potential sales of around 50 million units in fiscal 2025. Additionally, Wedbush foresees an increase in partnerships between Apple and Chinese entities, particularly involving large language models with Baidu in the near future. Ives states, "We believe over 20% of the world's consumer population will ultimately interact with AI through an Apple device over the coming years." Furthermore, the brokerage projects that developers will create "hundreds of" generative AI-driven applications for Apple devices within the next six to nine months.
Wedbush has upheld its outperform rating on Apple's stock, setting a 12-month price target of $300. Current Price: $227.90, Change: -$0.30, Percent Change: -0.13..