Wedbush Securities stated in a Friday note that Apple’s potential launch of Apple Intelligence in China could be the crucial factor driving long-awaited growth in the region. The firm estimates that over 100 million of the approximately 200 million iPhones in China are due for an upgrade. Apple Intelligence, introduced with the iPhone 16, has already boosted upgrades in the US, according to the note.
Wedbush said China has been a “major headwind” for Apple, with the company losing some share to Huawei over the past year. Apple’s deal with Alibaba, with Baidu also playing a role, to launch iPhone AI in China reportedly in early May, is expected to turn the tide, according to the note.
“We believe starting in the June quarter, growth returns to this flagship region with easier comps going forward into [fiscal year 2026],” Wedbush analysts, including Daniel Ives, said, adding that despite US-China tensions, they believe that Apple can balance its growth strategy in China as shown by the AI deal with Alibaba (BABA).
Wedbush maintained Apple’s outperform rating and $325 price target.
MacDailyNews Take: Apple Intelligence will indeed drive significant iPhone (and iPad and Mac) sales in China.
The Chinese people are, unfortunately, acclimated to censorship and a lack of freedom, so iPhone sales will increase with the advent of Apple Intelligence in China, regardless of the limitations placed upon it by the Chinese Communist Party. – MacDailyNews, February 11, 2025
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