Benzinga - by Shanthi Rexaline, Benzinga Editor.
With Apple, Inc.’s (NASDAQ:AAPL) better-than-expected March quarter results, investor attention would now shift toward Cupertino’s AI strategy, according to a bullish analyst.
Welcome Relief: Apple’s guidance for year-over-year growth returning in the June quarter allowed bulls to breathe a sigh of relief, said Wedbush analyst Daniel Ives in a note.
The analyst expects China’s iPhone unit growth to slowly turn from a headwind to a tailwind ahead of the start of the AI-driven iPhone 16 supercycle, starting in September.
The focus over the next month will, however, be on Apple’s AI reveal at the June annual World Wide Developer Conference, said Ives. The product cycle of the year will likely include new iPads, set to be announced on Tuesday,
“We believe the June quarter will be the end of this growth doldrums period as Apple starts to see a renaissance of growth heading into the September quarter and FY25,” Ives said.
Potential AI Pursuits: Apple’s potential incorporation of generative AI into the iPhone 16, according to the analyst, will mark the “start of a new frontier of growth for the golden installed base of Cupertino,” the analyst said.
“This will be an aggressive and no holds barred strategy around AI and making sure Apple monetizes this technology both from the Services front while catalyzing upgrades with iPhone 16 being the first Apple iPhone with its new AI exclusive features,” he said.
The analyst sees the launch of a separate AI App Store, which would be the foundational launching pad for developers and consumers tapping into AI.
“In a nutshell, we believe the worst is in the rearview mirror for Apple,” he said.
Wedbush has an Outperform rating and a $250 price target for Apple stock.
Apple ended Monday’s session down 0.91% at $181.71, according to Benzinga Pro data.
Read Next: Is Apple Back In The EV Game? Tech Giant Reportedly Eyes Rivian Partnership
Image via Shutterstock
Latest Ratings for AAPL
| Mar 2022 | Barclays | Maintains | Equal-Weight | |
| Feb 2022 | Tigress Financial | Maintains | Strong Buy | |
| Jan 2022 | Credit Suisse | Maintains | Neutral |
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.