Apple's (NASDAQ:AAPL) announced its long-awaited AI strategy, scheduled to be presented at June's Worldwide Developers Conference (WWDC). Dan Ives of Wedbush Excited.
what happened: Ives believes the “AI revolution” is headed to Cupertino next, considering it's the only company in the “Mag 7” that hasn't yet made a big AI announcement.
“The next six to nine months are going to be an AI-driven supercycle with iPhone 16,” Ives said in an interview with CNBC.
Ives hints that Apple's upcoming AI features will encourage users to upgrade to a new iPhone. “Look at China. They have 230 million iPhones, and 70% of them haven't been upgraded in the last three years.”
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“The AI revolution is now coming to Cupertino,” he said.
Apple reported that iPhone sales in Greater China (which includes mainland China, Hong Kong and Taiwan) fell 8.1%, far exceeding analysts' expectations of a decline of up to 19.1%.
Ives explains that this could be due to a rebound in iPhone sales in March, which bodes well for Apple for the next six to nine months. He expects Apple to increase iPhone sales in China in the September quarter.
“If you look at the next six, nine, 12 months, you’ll see a resurgence of growth coming back to Cupertino coupled with the AI buzz.”
SEE ALSO: “Have you used Siri lately?” Elon Musk responds to MKBHD after Tim Cook teases Apple's “exciting” AI developments this year
Why it's important: Apple's future AI strategy is being closely watched by analysts.
Reflecting similar sentiments to Ives, tesla company Investor ross garber believes Apple's AI announcement will lead to an upgrade cycle for the company.
Apple is currently negotiating with the following companies: Alphabet's Google similarly OpenAI backed by Microsoft Corp. License one of our AI models for iPhone. The company is separately developing its own generative AI solution called “Project Graymatter,” which is expected to debut in iOS 18 later this year.
Also helpful in Apple's lawsuit are: Tim Cook's On a recent visit to China, Gene Munster of Deepwater Asset Management This is a message for those who think Xi Jinping “Apple is fully committed to China,” the government claimed.
Price action: Apple stock closed 5.98% higher at $183.38 on Friday, according to Benzinga Pro.
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