Apple bull Dan Ives says company is facing 'key holiday season'

Investing.com -- Apple is gearing up for a pivotal holiday season as it looks to capitalize on the momentum of its flagship iPhone 16 and the rollout of its Apple (NASDAQ:AAPL ) Intelligence platform, according to Wedbush analyst Dan Ives.

"Black Friday officially kicks off an important holiday season for Apple," Ives stated, emphasizing that the iPhone 16 marks the beginning of a transformative period for the tech giant.

Demand for the iPhone 16, launched in September, has been "slightly ahead to generally in line with expectations globally," according to Ives, who noted that the upcoming release of software update 18.2 is poised to enhance Apple Intelligence features.

The update, expected next week, will introduce innovations such as ChatGPT integration in Siri, Genmoji, and Visual Intelligence, positioning Apple firmly in the consumer AI market.

Wedbush remains bullish, maintaining an Outperform rating and a $300 price target for Apple.

Ives highlighted three key dynamics driving Apple's growth: its unmatched installed base of over 2 billion iOS devices, including 1.5 billion iPhones; the $2 trillion valuation of its services business, which continues to expand monetization; and Apple's potential to lead consumer AI, with over 20% of the world's population likely to interact with AI on Apple devices in the coming years.

Ives predicts the ongoing iPhone upgrade cycle could set records, with 300 million iPhones globally in the upgrade window, potentially driving 240 million unit sales in FY25, which would mark the highest in Apple's history.

"In our view, Apple could sell north of 240 million iPhone units in FY25 as this AI-driven upgrade cycle takes hold and this will be the highest iPhone unit sales year in Apple's history," he wrote.

He explained that a key catalyst will be the integration of AI features in China, expected in April, supported by a forthcoming Chinese tech partnership.

"This will be a multi-year AI journey," Ives said, noting that Apple Intelligence could redefine the company's ecosystem and fuel growth over the next 12 to 18 months.

Source: Investing.com