Investment analyst firm TD Cowen forecasts a stagnant growth for Apple in its upcoming earnings call but remains optimistic about potential spikes driven by AI advancements in future iPhone models. Despite the flat projections, the firm has maintained a $220 price target for Apple shares, citing increasing sales in India as a key factor.
According to a recent investor note by TD Cowen, although global iPhone sales are expected to decline by approximately 3% year-over-year, there's a hopeful outlook for a recovery with the anticipated launch of the iPhone 16 range. In contrast, sales of Macs are predicted to fall by about 4%, while Apple's services sector is expected to grow by 11%.
The firm also highlighted the stabilization of iPad sales, even before the launch of new models scheduled for May 7, 2024. However, not all news from the tech giant is positive; the Apple Vision Pro is reportedly seeing a drop in demand, currently available only in the US. Additionally, the Apple Watch has faced challenges due to a US import ban and the removal of the blood oxygen feature.
TD Cowen suggests that the forthcoming AI features in the iPhone 17 range could be a significant growth catalyst, particularly noting the "underpenetrated" market in India as a critical area for potential sales increase. This comes amidst declining iPhone demand in China, which may be somewhat mitigated by the new opportunities in India.
With other analysts such as JP Morgan and Morgan Stanley also predicting that AI will eventually boost iPhone sales, particularly by 2025, Apple's future in the smartphone market looks promising albeit current challenges.
