iPhone 14 Series Expected to Drive Apple's Revenue Growth with AI-Powered Features

Wednesday 2nd of April 2025 18:35:09

Apple Set for Strong iPhone Upgrade Cycle Driven by AI, Analyst Says

A new iPhone cycle is expected to drive strong sales for Apple Inc. (NASDAQ: AAPL) in the coming quarters, according to a recent note from Wedbush analyst, Dan Ives.

In a research report, Ives noted that the upcoming iPhone 15 series is expected to be a major upgrade cycle for Apple, driven by the adoption of artificial intelligence (AI) and other advanced technologies. The analyst believes that the new iPhone will appeal to a broader range of consumers, including those who may have previously held off on upgrading due to the lack of significant changes in previous models.

Ives expects the new iPhone to be a major catalyst for Apple's revenue growth, particularly in the second half of the year. He notes that the iPhone has historically been the company's largest and most profitable product category, accounting for around 50% of its revenue.

"We believe the iPhone 15 series will be a major upgrade cycle for Apple, driven by the adoption of AI and other advanced technologies," Ives said in the report. "We expect the new iPhone to be a major catalyst for Apple's revenue growth, particularly in the second half of the year."

Ives also noted that the new iPhone will benefit from a stronger-than-expected demand for 5G-enabled devices, as well as the increasing adoption of AI-powered features in smartphones. He believes that the new iPhone will be a major driver of growth for Apple's services segment, including the App Store and Apple Music.

The analyst has set a price target of $220 for Apple's stock, representing a potential upside of around 20% from current levels. He also reiterated his "Buy" rating on the stock, citing the company's strong financials, innovative products, and growing services segment.

Overall, Ives believes that the upcoming iPhone 15 series will be a major catalyst for Apple's revenue growth and profitability, driven by the adoption of AI and other advanced technologies. He expects the new iPhone to be a major driver of growth for the company's services segment, and believes that the stock has significant upside potential.