Apple is poised for significant market growth, with Wedbush analysts projecting a $4 trillion market capitalization driven by the upcoming AI-enhanced iPhone 16.ย The new iPhone is expected to start the new upgrade cycle, which will fulfill the demands that have been accumulated all over the world.
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Wedbush analysts highlight the possibility of a โgolden upgrade cycleโ with Appleโs inclusion of artificial intelligence as a key turning point in the consumer electronics industry.
โThe Street is now starting to slowly recognize that with Apple Intelligence on the doorstep in essence Cupertino will be the gatekeepers of the consumer AI Revolution.โ
Wedbush analysts
Apple taps into massive iOS user base for growth
Currently, there are more than 2.2 billion iOS devices and 1.5 billion iPhones in use worldwide, and the new AI-powered iPhone 16 is expected to kick start the โconsumer AI tidal waveโ by mid-September. The upgrade cycle is very important because it has been estimated that 270 million iPhone users have not upgraded their devices in more than four years.
The stabilization of iPhone supplies in Asia is definitely a bullish sign for Appleโs upcoming upgrade cycle. Although the Chinese market has faced certain problems, such as competition, there are indications of growing shipments. Analysts at Wedbush believe this contractionโs last quarter will be in June before the next quarter, which should align with the release of the iPhone 16.
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The anticipated release of iOS 18, with the support of Apple Intelligence and the partnership with OpenAI, is expected to increase the value of the shares. Wedbush analysts have predicted that this will open up numerous monetization opportunities that will support Appleโs revenue growth.
โAI technology being introduced into the Apple ecosystem will bring monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share.โ
Wedbush analysts
Apple takes a cautious approach to AI implementation
Apple is also much more cautious in the introduction of new AI services than other tech giants such as Microsoft, Google, Meta, and OpenAI. Apple has taken measures to make sure that its AI services are as transparent as possible while also protecting the privacy of the user. The companyโs executives stated that they do not wish to replicate the mistakes of their competitors, for instance, data mining and using it to train algorithms without the userโs permission.
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Even though the potential was highlighted by Wedbush analysts, Apple shares remained nearly flat in the early Monday trading session. However, the stocks have registered a 17% gain since the start of this year.
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