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Apple's iPhone 16 Sparks AI-Driven Sales Surge in China

AInvestFriday, Oct 18, 2024 11:00 am ET
1min read

Wedbush Securities' latest report highlights a significant resurgence in Apple's (AAPL.US) growth, driven by the strong sales of the iPhone 16 in China. Sales in the first three weeks have increased by 20% year-over-year, with the Pro and Pro Max models particularly seeing a 44% rise compared to last year's iPhone 15. This trend aligns with analyst Dan Ives' recent industry insights and supply chain checks during his Asia visit.

Ives predicts that the launch of the iPhone 16 will trigger a robust rebound in Apple's sales in the Chinese market over the next year, initiating an AI-driven super cycle. He maintains an "outperform" rating on Apple stock with a target price of $300, underscoring the strategic importance of the Chinese market for the company's growth trajectory.

Moreover, there is potential for Apple to engage in collaboration with China's Baidu in the AI sector, mirroring its partnership approach with OpenAI in the U.S. Ives believes that the introduction of AI features and a significant upgrade cycle is heralding a new era of iPhone expansion, particularly in China, which has been a challenging market for Apple's revenue growth over the past year.

Looking ahead to 2025, Ives anticipates that 100 million iPhones in China are due for an upgrade, projecting total iPhone sales to surpass 240 million units for the fiscal year, driven by this AI-powered upgrade cycle.

As of the latest reports, Apple's stock has appreciated by 1.8% in pre-market trading.

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