Apple’s problems in China might even come to an end thanks to a massive upgrade cycle for its upcoming iPhone 16 range, according to investment firm Wedbush.
Since WWDC, Wedbush has been bullish on Apple. It is particularly excited about Apple’s opportunity to grow iPhone sales.
However, its analysts are more optimistic about Apple’s growth. According to Wedbush, supply chain checks in Asia indicate a massive upgrade cycle for the iPhone 16 and a “monumental demand.”
The company says it believes China has seen its last negative iPhone growth quarter based on better-than-expected figures in March 2024. With the launch of the new iPhones in September, the company expects growth to turn around.
According to Wedbush, Apple has become the gatekeeper of AI features for consumers. Apple’s implementation of Apple Intelligence, and the fact that it has 2.2 billion active devices worldwide, means other AI firms will need to integrate with Apple.
As a result, AI developers would have to follow the same integration model that Apple has announced with OpenAI’s ChatGPT. The firm estimates that Apple will add $10 billion in annual revenue by partnering with other firms in this way.
Additionally, the company believes the integration of AI into Apple’s ecosystem should add $30-$40 to its share price. Due to the unspecified monetization opportunities, both Apple Services and hardware sales will increase.
