Proactive Investors - Apple Inc (NASDAQ:AAPL, ETR:APC)'s upcoming iPhone 16 model lineup launch will kick off the biggest upgrade cycle in the company’s history, analysts at Wedbush believe.
The iPhone maker will launch its latest mobile devices on Monday, September 9 at 1pm Eastern Time.
“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,” the analysts believe.
Their initial supply chain checks for the iPhone 16 show much stronger demand than for the iPhone 15.
Analysts project initial iPhone 16 shipments of 90 million, above Street estimates of 80 million to 84 million, up by double-digits year-over-year.
“We are continuing to see further indications across the Asia supply chain that this iPhone upgrade cycle could be a historical one setting the stage for a supercycle as currently we estimate roughly 300 million iPhones globally have not upgraded in over four years,” they wrote.
“In our view, Apple could sell north of 240 million iPhone units in FY25 as this AI-driven upgrade cycle takes hold.”
A key aspect of the launch is the unveiling of Apple Intelligence, an AI platform developed by the iPhone maker, analysts highlighted.
“We believe the Street is starting to slowly recognize that with Apple Intelligence on the doorstep in essence Cupertino [Apple’s headquarters] will be the gatekeeper of the consumer AI Revolution,” they wrote.
“Developers and other technology stalwarts will likely now need to integrate their AI models/ technology into Apple Intelligence looking ahead as Apple and its golden iOS ecosystem hold the only keys to the castle of 2.2 billion iOS devices worldwide and 1.5 billion iPhones.”
The analysts have an ‘Outperform’ rating and a $285 price target on Apple, implying an upside of almost 30% from its current share price.