Apple’s (NASDAQ:) iPhone is showing stabilization, according to the latest Wedbush research based on recent supply chain reviews in Asia.
The investment firm raised its price target on Apple shares from $250 to $275, noting that the stabilization is a very good sign ahead of the monumental iPhone 16 refresh cycle.
According to Wedbush, iPhone demand is “turning the corner on the AI-powered iPhone 16 supercycle” which is just around the corner. “We believe that the introduction of artificial intelligence technology into the Apple ecosystem will bring significant
monetization opportunities on both services and iPhone/hardware and adds $30 to $40 per share to Cupertino’s growth story as this vision begins to be realized within the golden installed base of 2.2 billion iOS devices.”
Taiwan Wedbush checks over the past week show Apple’s April supply chain results were 2% ahead of historical linearity, while consensus remained unchanged.
“April’s superior performance may have been helped by higher inventories ahead of the Chinese holidays in May and June, although analysts also noted a slight rise in Chinese phone production forecasts for the June quarter, with healthy expectations for CQ3 builds,” the company said.
Additionally, Wedbush believes Apple will lay the groundwork for the AI App Store as developers build consumer apps on top of the artificial intelligence stack the company is expected to unveil at WWDC in June, leading to the growth of additional services in the coming years .