Brace yourselves for ‘Glowtime’ – Apple’s (NASDAQ:AAPL) highly anticipated iPhone 16 launch event, happening right now.
Apple’s annual iPhone reveal is always a major event, but this year’s promises to be even more groundbreaking. According to Wedbush analyst Daniel Ives, the release of the AI-driven iPhone 16 lineup is set to kick off Apple’s “biggest upgrade cycle in its history.”
“This iPhone 16 release is all about Apple Intelligence and the unleashing of the consumer AI Revolution through Cupertino,” says Ives. “We estimate that roughly 20% of consumers worldwide will ultimately access and interact with generative AI apps through the Apple ecosystem over the coming years which all kicks off with iPhone 16 this week.”
Of particular importance, beginning with the iPhone 16, Ives anticipates the critical China market will witness renewed and accelerated growth, with the analyst believing initial iPhone 16 shipments will be nearer the 90 million+ mark rather than the Street’s original forecast of 80 million to 84 million units.
Specs wise, the iPhone 16 will come with the new A18 chip, which serves as the core processor powering Apple Intelligence, while the iPhone 16 Pro and Pro Max will feature the A18 Pro chip, offering significantly faster performance, improved battery life/tech, and upgraded camera capabilities as a key selling point. Ives anticipates pricing to remain similar to the iPhone 15, as Apple is unlikely to risk losing upgrades (and the shift toward AI) by raising prices.
As for the event, Ives expects some “eye opening” demos that will highlight Apple’s strategic vision for those mulling over an upgrade to the iPhone 16. “In a nutshell,” the analyst went on to say, “this is a historic week for Apple and we believe kicks off the next leg of the Apple growth story for Cook and Cupertino.”
Bottom line, Ives rates Apple shares an Outperform (i.e., Buy) with a $285 price target, suggesting upside of 29% is in the cards for the coming year. (To watch Ives’ track record, click here)
That’s the Wedbush view, but what does the rest of the Street make of Apple’s prospects? 24 other analysts join Ives in the bull camp and with an additional 9 Holds and 1 Sell, the analyst consensus rates the stock a Moderate Buy. Going by the $249.11 average target, a year from now, shares will be changing hands for a ~13% premium. (See Apple stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
