Wedbush backs Apple (AAPL.US): iPhone 16 is popular and the wave of AI upgrades will drive a strong rebound in the Chinese market

The Zhitong Finance App learned that the latest report from Wedbush Securities (AAPL.US) indicates that Apple's (AAPL.US) iPhone 16 sales in China increased 20% year-on-year in the first three weeks. This data marks a revival of Apple's growth momentum. The bank's analyst Dan Ives (Dan Ives) emphasized in the customer report that sales of the high-end Pro and Pro Max models in particular increased 44% compared to last year's iPhone 15. This trend is consistent with industry analysis and supply chain inspection results from his recent trip to Asia. Ives predicts that with the launch of the artificial intelligence supercycle led by the iPhone 16, Apple's iPhone sales in the Chinese market will rebound strongly within the next year. Ives maintained an “outperforming market” rating on Apple stock and gave a target price of $300.

In addition, Ives also mentioned that Apple may cooperate with China's Baidu (BIDU.US) in the field of artificial intelligence, similar to its cooperation model with OpenAI in the US, which may further promote the upgrading of iPhones in the Asian market. He believes that the artificial intelligence function introduced by Apple, along with a large-scale upgrade cycle, is beginning a new era of iPhone growth, especially in China, a key market that has been a drag on Apple's revenue growth over the past year.

Ives predicts that in 2025 alone, 100 million iPhones will face upgrade opportunities in the Chinese market. For the entire 2025 fiscal year, Ives expects Apple to sell more than 240 million iPhones, driven by an AI-driven upgrade cycle.

As of press time, Apple's stock price in pre-market trading is up 1.8%.