Apple (AAPL) IPhone Showing Stabilization 'with Big AI Moment Ahead' | Old North State Wealth News
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Apple (AAPL) iPhone showing stabilization ‘with big AI moment ahead’



According to Wedbush’s latest research, based on its recent Asia supply chain checks, the Apple (NASDAQ:) iPhone is showing stabilization.

The investment firm raised its price target for Apple’s stock to $275 from $250 in a note, noting that the stabilization is a very good sign heading into a monumental iPhone 16 upgrade cycle.

iPhone demand is “turning the corner into an AI-driven iPhone 16 supercycle,” which is now on the horizon, said Wedbush. “We believe AI technology being introduced into the Apple ecosystem will bring ample

monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share to the Cupertino growth story as the vision starts to play out within the golden installed base of 2.2 billion iOS devices.”

Wedbush’s Taiwan checks over the last week indicate April results for the Apple supply chain were 2% ahead of historical linearity, while consensus remained unchanged.

“Outperforming during April was perhaps helped by inventory build ahead of China’s holidays in May and June, though analysts have also seen a slight lift in Chinese handset build projections for the June quarter, with healthy expectations around CQ3 builds,” says the firm.

Furthermore, Wedbush believes Apple will lay the foundation for an AI App Store as developers build consumer apps on the AI stack the company is expected to introduce at the WWDC event in June and will lead to additional Services growth over the coming years.

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