Apple (NASDAQ:AAPL) is set to unveil its iPhone 16 at an upcoming launch event, which Wedbush analysts predict will kickstart an “AI super cycle” for the technology behemoth.
The investment firm expects that Apple’s launch of the AI-driven iPhone 16 model lineup, scheduled for Monday at 1 PM EST, will mark the beginning of the company’s “biggest upgrade cycle in its history.”
“Importantly, we expect the key China region to see improving and accelerating growth in this region once again starting with iPhone 16 heading into FY25,” analysts wrote.
“This iPhone 16 release is all about Apple Intelligence and the unleashing of the consumer AI Revolution.”
Wedbush projects initial shipments of the iPhone 16 to surpass 90 million units, exceeding the original expectations of 80 to 84 million and representing double-digit year-over-year growth.
Citing data from the Asia supply chain, analysts believe this upgrade cycle could be historic, with approximately 300 million iPhones globally having not been upgraded in over four years. They estimate Apple could sell over 240 million iPhones in fiscal 2025.
The new iPhone 16 Pro models will feature larger displays, with the regular Pro expanding to 6.3 inches from 6.1, and the Pro Max increasing to nearly 6.9 inches from 6.7.
Both the iPhone 16 and its Pro models will be powered by the new A18 chip, while the Pro and Pro Max will utilize the faster A18 Pro chip.
These upgrades will offer enhanced battery life, improved camera technology, and will be key drivers of Apple Intelligence for consumers, Wedbush highlights. The firm also expects Apple to maintain pricing similar to the iPhone 15, believing the company will avoid any price hikes to ensure it capitalizes on the AI-driven upgrade cycle.
“We believe the demos at the event in Apple Park will be eye-opening and speaks to the broader strategic vision for consumers looking to upgrade to iPhone 16,” the note states.
Wedbush maintained an Outperform rating on Apple stock, alongside a price target of $285.
