Apple’s (AAPL, Financials) “renaissance of growth has begun,” according to Wedbush Securities, as sales of the iPhone 16 in China surged 20% year over year in the first three weeks of its launch.
With Apple 16 Pro and Pro Max sales up 44% compared to last year’s iPhone 15, Wedbush emphasized the strength of Apple’s higher-end devices. Based on Wedbush’s recent supply chain investigations and observations from a trip to Asia, this performance corresponds with a significant comeback in iPhone sales in China over the next year powered by the iPhone 16.
Analyst Dan Ives highlighted his $300 price estimate and maintained Apple’s Outperform rating. Apart from strong iPhone sales, Ives said that Apple may collaborate with Baidu (BIDU, Financials) for artificial intelligence projects in China, same as it does with OpenAI in the United States. This cooperation might propel local iPhone improvements even further.
Driven by the AI-powered upgrading cycle, especially in China, which had been a weak point for the firm over the last year, Ives believes Apple may sell more than 240 million iPhones in fiscal 2025.
This article first appeared on GuruFocus.
