Wedbush Securities reports a significant 20% year-over-year increase in Apple's (AAPL, Financial) iPhone 16 sales in China during the initial three weeks since launch, signifying a revival in growth. Analyst Dan Ives highlights the exceptional performance of the high-end Pro and Pro Max models, which saw a 44% increase compared to the previous year's iPhone 15. This aligns with his recent analysis and supply chain checks in Asia.
Ives foresees a robust rebound in iPhone sales in China over the next year, driven by the AI-led supercycle initiated by the iPhone 16. He maintains an "outperform" rating for Apple stock, setting a price target of $300.
Ives also notes the potential for Apple to collaborate with Chinese tech company Baidu (BIDU) in the AI sector, akin to its partnership with OpenAI in the U.S. Such a collaboration could further bolster iPhone upgrades in the Asian market. Ives believes Apple’s introduction of AI features and large-scale upgrade cycles mark a new era of iPhone growth, especially in China, where revenue growth has been sluggish over the past year.
Looking ahead to 2025, Ives predicts 100 million iPhones in China will be due for an upgrade. He projects that Apple's iPhone sales could exceed 240 million units in the 2025 fiscal year, driven by the AI-driven upgrade cycle.
As of pre-market trading, Apple's stock price has risen by 1.8%.
