Apple could aid 20% of all consumers around the world access AI, Wedbush says

Apple (NASDAQ:AAPL) is holding its annual fall product event today, and Wedbush Securities believes the launch of the iPhone 16 could help usher in a new wave of artificial intelligence usage by consumers around the world.

“This iPhone 16 release is all about Apple Intelligence and the unleashing [sic] of the consumer AI Revolution through Cupertino,” analyst Dan Ives wrote in an investor note. “We estimate that roughly 20% of consumers worldwide will ultimately access and interact with generative AI apps through the Apple ecosystem over the coming years, which all kicks off with iPhone 16 this week.” Ives maintained his Outperform rating and $285 price target on Apple.

Some of that increased AI usage will come via increased iPhone 16 shipments, as Ives — and others — have pointed to initial shipments of 90M or more, compared to expectations between 80M and 84M, as roughly 300M iPhones have not been upgraded in more than four years.

“In our view, Apple could sell north of 240 million iPhone units in FY25 as this AI-driven upgrade cycle takes hold,” Ives posited.

Further AI usage is likely to come from developers building more generative AI apps — Ives is expecting hundreds in the next 6 to 12 months — and Apple’s demos at the event.

“We believe the demos at the event in Apple Park will be eye-opening and speaks to the broader strategic vision for consumers looking to upgrade to iPhone 16,” Ives explained.