Apple Inc. ($AAPL) is set to make waves in the tech industry with the anticipated release of its iPhone 16 next week. Analysts from Wedbush Securities insist that this launch marks the inception of what could be the "biggest upgrade cycle" in Apple's rich history, bolstered significantly by its commitment to artificial intelligence (AI).
This groundbreaking device is slated to be unveiled on Monday, and Wedbush predicts that Apple may ship over 90 million units, eclipsing Wall Street's earlier estimates that ranged between 80 million and 84 million units. Notably, an estimated 300 million iPhone users worldwide have not upgraded their devices for four years or longer, signaling a ripe opportunity for Apple to engage these consumers. The predictions from Wedbush reinforce sentiments expressed by the brokerage in previous reports, indicating a robust outlook for the tech giant.
Analysts believe that Apple will maintain the pricing of the iPhone 16 at a level akin to its predecessor to avoid deterring potential upgraders. "We believe the demos at the event in Apple Park will be eye-opening and reflect a broader strategic vision for consumers eager to upgrade to the iPhone 16," stated Daniel Ives, head analyst at Wedbush, in their most recent note to clients. Earlier this year, in June, Apple unveiled several new AI capabilities under its Apple Intelligence suite.
These features are designed to enhance user experience across various platforms, including their flagship smartphone line, the iPhone. Moreover, the report from Wedbush brings promising news regarding the Chinese market, predicting improving and accelerating growth within this pivotal region. As per Ives, "In our perspective, Apple could sell more than 240 million iPhone units in fiscal year 2025 as this AI-driven upgrade cycle gains traction." Wedbush has reaffirmed its "outperform" rating on Apple's stock and reiterated a 12-month price target of $285.
Despite a minor dip, with shares of the technology titan closing down 0.6% in midday trading, the outlook remains largely positive. Current share price is recorded at $221.01, with a change of -1.37, reflecting a percent change of -0.62 for today. Investors remain optimistic, eyeing the innovative features and market strategies that Apple plans to unveil in the weeks to come..