Apple Inc (NASDAQ:AAPL) on Monday officially sent out invites for its iPhone 16 launch on September 9 in Apple Park.
Analysts at Wedbush believe this event will initiate the “biggest upgrade cycle” in Apple’s history, “with AI now on the doorstep.”
“Our recent Asia checks are giving us more confidence this upgrade cycle will unleash a long-awaited renaissance of growth for Cupertino over the next year,” analysts said.
Wedbush now projects initial shipments of the iPhone 16 will exceed 90 million units, beating earlier market expectations, which ranged from 80 million to 84 million units. This would mark a double-digit year-over-year increase.
The investment firm estimates that around 300 million iPhones worldwide have not been upgraded in over four years, setting the stage for a significant demand surge.
“In our view Apple could sell north of 240 million iPhone units in FY25 as this AI-driven upgrade cycle takes hold,” analysts continued. “China remains the linchpin of growth for Apple and now this key region is set to see improving growth once again starting with iPhone 16 heading into fiscal 2025.”
With the upcoming launch of Apple Intelligence, Wedbush analysts believe the iPhone maker could become “the gatekeepers of the consumer AI Revolution.”
They point out that developers and tech companies will need to integrate their AI models into Apple's ecosystem, which is supported by 2.2 billion iOS devices and 1.5 billion iPhones worldwide.
Over the next 6 to 12 months, Wedbush expects developers to create hundreds of generative AI-driven apps, which could significantly contribute to Apple’s success. This integration could potentially add an estimated $10 billion in high-margin annual growth to Apple’s Services segment.
Following the market close on Monday, Apple announced that its longtime CFO Luca Maestri will step down from his role on January 1 after over a decade in the position. Maestri will continue overseeing Corporate Services. Kevan Parekh, an 11-year Apple finance veteran, will succeed him as head of finance.