Investment firm Wedbush remains bullish on Apple, projecting a bright future beyond a couple of tough quarters. Despite a slump in sales in China, the firm upholds its $250 price target for Apple, citing several reasons for optimism. Among these, the impending release of the iPhone 16 and the introduction of new AI features stand out as significant growth drivers.
Wedbush, having elevated its Apple price target to $250 in December 2023, reiterates its confidence in the tech giant's resilience and growth potential. This optimism persists even as iPhone demand in China shows signs of waning. The firm's analysis suggests that iPhone sales for 2024 are still within reach, and forecasts for 2025 appear conservative yet promising. Moreover, there's an anticipated high demand for the iPhone 16 series, reflecting a pent-up desire among consumers for the latest Apple innovation.
Apple's services sector is also expected to continue its robust performance, with double-digit growth projected. This, coupled with the largest installed user base among all companies, provides a solid foundation for Apple's sustained success. Furthermore, the announcement of new AI features for the iPhone in June is poised to redefine user experience and elevate Apple's market position.
Wedbush acknowledges the current challenges, including a "brutal March quarter" and a potentially soft June. However, these are viewed as temporary setbacks before a return to growth. A key factor in this rebound will be how Apple addresses its declining sales in China. The firm views CEO Tim Cook's recent visit to China as a pivotal move to reaffirm Apple's commitment to the Chinese market. Despite diversification efforts, it's believed that the majority of Apple's suppliers will remain in China.
As the tech community and investors await Apple's March quarter earnings announcement on May 2, 2024, there's a palpable sense of anticipation. With strategic product launches and innovations on the horizon, Apple appears well-positioned to overcome current obstacles and embark on a new growth trajectory.
