Apple’s Comeback
The Apple Analyst: According to Wedbush analyst Daniel Ives, Apple, Inc. has the potential to reverse its fortunes. Ives maintains an “Outperform” rating and a $250 price target for Apple shares.
Positive Supply Chain Checks
The Apple Thesis: Ives’ latest Asia supply chain checks reveal signs of revived demand for iPhones in China. The positive findings support Ives’ prediction of the iPhone 15 driving an upgrade cycle that surpasses market expectations.
Strong Performance and Resilience
Despite facing a decline in China revenue, Ives anticipates iPhone unit sales of 225 million to 230 million units for this year. This will be driven by the shift towards the two high-end models and a significant average selling price of over $900 for flagship devices.
AI and Services Growth
Ives attributes the recent stock recovery to the anticipation of Cupertino’s entry into the AI space. He believes that AI, combined with the dependable Services business, will fuel Apple’s growth.
Swift Recovery and Competition
Ives is optimistic about Apple’s future in China, despite the competition from Huawei and potential geopolitical challenges. He highlighted that most consumers remain loyal to the Apple ecosystem, providing a solid foundation for Apple’s bullish outlook in China.
Forthcoming Game-Changing AI Technology
Ives predicts that Apple’s upcoming breakthrough in AI technology, expected to be unveiled at WWDC in June, will be the company’s ‘Super Bowl moment.’ This event is anticipated to mark the beginning of a renaissance in growth for Apple, with a potential annual run-rate of over $5 billion from AI monetization opportunities.
Price Action and Future Prospects
AAPL Price Action: Apple closed Friday’s trading session at $188.95, representing a 0.41% increase, according to Benzinga Pro data.