#aapl Investing.com – Apple (NASDAQ:AAPL) is gearing up for a pivotal holiday season as it looks to build on the momentum of its flagship iPhone 16 and the launch of its Apple Intelligence platform, Wedbush analyst Dan Ives noted.
“Black Friday officially marks the start of an important holiday season for Apple,” said Ives, noting that the iPhone 16 represents the beginning of a transformative period for the technology giant.
iPhone 16 and the expansion of artificial intelligence
The iPhone 16, released in September, has seen demand "slightly above or in line with global expectations," according to Ives. He noted that the 18.2 software update, expected next week, promises to enhance Apple Intelligence features.
Among the planned innovations are the integration of ChatGPT with Siri, the Genmoji feature and Visual Intelligence technology, positioning Apple as a relevant force in the consumer-facing artificial intelligence market.
Wedbush maintains an optimistic outlook on the company, reiterating an "Outperform" rating and a $300 price target for Apple shares.
Three pillars of Apple's growth
Ives pointed to three key factors driving Apple's growth:
1. Unparalleled installed base: Over 2 billion iOS devices in use, including 1.5 billion iPhones.
2. Services expansion: Apple's $2 trillion services business continues to expand its monetization.
3. Leadership in AI: Apple has the potential to lead the consumer AI market, with more than 20% of the global population expected to interact with artificial intelligence on Apple devices in the coming years.
iPhone update cycle could break records
Ives projects that the current iPhone upgrade cycle could set new records. With 300 million devices globally in the exchange period, Apple could achieve sales of 240 million units in fiscal year 2025, a historic milestone for the company.
“In our view, Apple could sell more than 240 million iPhone units in 2025, driven by this AI-driven refresh cycle, making this the biggest year of iPhone sales in Apple history,” wrote Ives.
AI Integration in China as a Key Factor
A critical factor in this growth will be the integration of AI capabilities in China, scheduled for April, in partnership with a major Chinese technology company.
“This will be a multi-year AI journey,” highlighted Ives, noting that Apple Intelligence has the potential to redefine the company's ecosystem and drive growth over the next 12 to 18 months.
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