iPhone upgrade cycle may unleash ‘long awaited renaissance of growth:’ Wedbush

Apple (NASDAQ:AAPL) is slated to unveil its latest iPhone — and several other products — on Sept. 9 and the evidence is increasing that the next smartphone may usher in a “renaissance of growth” for the tech giant, investment firm Wedbush Securities said.

“Our recent Asia checks are giving us more confidence this upgrade cycle will unleash a long awaited renaissance of growth for Cupertino over the next year,” analyst Dan Ives wrote in an investor note, adding that he now believes initial iPhone 16 shipments will be more than 90M.

Ives has an Outperform rating and $285 price target on Apple.

“We are seeing more indications across the Asia supply chain over the past few weeks this iPhone upgrade cycle could be a historical one, setting the stage for a super cycle as currently we estimate roughly 300 million iPhones globally have not upgraded in over 4 years,” Ives continued. “In our view, Apple could sell north of 240 million iPhone units in FY25 as this AI driven upgrade cycle takes hold.”

On Monday, Apple sent out invites for its fall product event with the tagline “Glowtime,” a nod to the upgraded version of Siri and its artificial intelligence enhancements.

‘Seamless transition’

Apple also announced on Monday that longtime Chief Financial Officer Luca Maestri would be stepping down from his role, effective Jan. 1, 2025, and be replaced by longtime Apple employee, Kevan Parekh.

The transition should be “seamless,” Ives said, as Parekh “has been trained for this role over the years.”

Maestri will stay on at Apple and lead the Corporate Services teams, including information systems and technology, information security, and real estate and development, reporting to CEO Tim Cook.