How the iPhone 16 With AI Could Send Apple's Market Value to $4T

Apple (AAPL) could beryllium connected nan way to a $4 trillion market capitalization arsenic an iPhone upgrade rhythm approaches, driven by nan iPhone 16 supercharged pinch artificial intelligence (AI) capabilities, according to Wedbush analysts.

Apple's recently announced iOS 18 pinch Apple Intelligence and OpenAI business are besides expected to create monetization opportunities and summation stock value.

AI iPhone 16 Upgrade Cycle Coming Soon

Wedbush expert said that an AI iPhone 16 could bring "a aureate upgrade rhythm for Cupertino looking up pinch pent-up request building globally."

"The Street is now starting to slow admit that pinch Apple Intelligence connected nan doorstep successful principle Cupertino will beryllium nan gatekeepers of nan user AI Revolution," they said, pinch 2.2 cardinal iOS devices globally and 1.5 cardinal iPhones.

Wedbush suggested a "consumer AI tidal wave" could commencement pinch nan iPhone 16 successful mid-September, adding that estimates bespeak 270 cardinal iPhones users person not upgraded successful complete 4 years.

Recovery successful China To Support Upgrade Cycle

The analysts indicated that iPhone proviso stabilization successful Asia is besides "a very bully motion heading into a monumental iPhone 16 upgrade cycle."

Wedbush's projections travel amid ongoing concerns for nan iPhone maker successful nan China region amid increased competition, though location person been caller signs of improving shipments.

They projected that June "will beryllium nan past antagonistic maturation 4th for China pinch a maturation turnaround opening successful nan September quarter," erstwhile nan iPhone 16 is expected to beryllium released.

AI and iOS 18 Could Also Boost Share Value

Apple unveiled iOS 18 supercharged by Apple Intelligence and an AI business pinch OpenAI astatine its developers' convention successful June.

Wedbush analysts said nan business pinch nan Chat-GPT shaper "creates nan road for developers astir nan globe to attraction connected iOS 18 and this successful move will create a myriad of monetization opportunities for Cook & Co. complete nan coming years."

The analysts estimated that "this could consequence successful incremental Services precocious separator maturation annually of $10 cardinal for Apple" driven by hardware and software.

They added they judge "AI exertion being introduced into nan Apple ecosystem will bring monetization opportunities connected some nan services arsenic good arsenic iPhone/hardware beforehand and adds $30 to $40 per share."

Apple shares were small changed successful early trading Monday, though they person gained much than 17% since nan commencement of nan year.