Apple Unveils iPhone 16

Apple (NASDAQ:AAPL) is set to unveil its iPhone 16 at an upcoming launch event, with Wedbush analysts predicting it will initiate an “AI super cycle” for the tech giant.

The upcoming AI-driven iPhone 16 model lineup will launch on Monday at 1 PM EST, marking what analysts claim to be Apple’s “biggest upgrade cycle in its history.”

“Importantly, we expect the key China region to see improving and accelerating growth in this region once again starting with iPhone 16 heading into FY25,” analysts noted.

They stated, “This iPhone 16 release is all about Apple Intelligence and the unleashing of the consumer AI Revolution.”

Wedbush projects initial shipments of the iPhone 16 to exceed 90 million units, surpassing the initial expectations of 80 to 84 million and indicating double-digit year-over-year growth.

Citing Asia supply chain data, analysts believe this upgrade cycle could be historic, with about 300 million iPhones globally not upgraded in over four years. They estimate Apple could sell over 240 million iPhones in fiscal 2025.

The new iPhone 16 Pro models will sport larger displays, with the regular Pro growing from 6.1 inches to 6.3 inches, and the Pro Max increasing from 6.7 inches to nearly 6.9 inches.

Both the iPhone 16 and its Pro models will feature the new A18 chip, while the Pro and Pro Max will utilize the faster A18 Pro chip. These enhancements promise better battery life, improved camera technology, and are expected to drive Apple Intelligence for consumers, according to Wedbush. The firm anticipates Apple will maintain pricing similar to the iPhone 15, avoiding price hikes to capitalize on the AI-driven upgrade cycle.

“We believe the demos at the event in Apple Park will be eye-opening and speaks to the broader strategic vision for consumers looking to upgrade to iPhone 16,” the note states.

Wedbush maintains an Outperform rating on Apple stock, with a price target of $285.