Apple's smart move is expected to trigger an iPhone upgrade wave. Investment bank Baird raises Apple's target price to $240
Apple's target price has been raised to $240 by investment firm Baird, maintaining its "outperform" rating. Analysts believe that with Apple's artificial intelligence plans, iPhone sales are expected to increase, with nearly 95% of iPhone users worldwide likely to upgrade to take advantage of Apple's intelligence. It is expected that Apple's 2025 fiscal year iPhone sales will be raised by about 20 million units, with iPhone revenue expected to reach $216.1 billion, a year-on-year increase of 9%. Apple's full-year revenue is expected to reach $418.1 billion, with earnings per share of $7.30, higher than previous expectations
According to the financial news app Zhitong Finance, investment firm Baird has raised Apple's (AAPL.US) target price from $200 to $240 and maintained its "outperform" rating. The firm stated that due to its artificial intelligence plans, Apple has the opportunity to boost iPhone sales.
Analyst William Power stated, "We estimate that nearly 95% of iPhones worldwide, even those initially focused on the United States, will need to upgrade at some point to take advantage of Apple's intelligence." "Of course, other Apple devices such as Mac and iPad will also benefit."
Power also pointed out that the upgrade rate for AT&T and Verizon users has been consistently low, indicating that consumers may be waiting for artificial intelligence to enter smartphones. Power added, "With the smartphone upgrade cycle extending by several years, resulting in more old iPhone users, over 1 billion iPhone users worldwide may see an upgrade catalyst."
Therefore, Power has raised his expectations for iPhone sales in the 2025 fiscal year by about 20 million units. It is currently expected that iPhone revenue will reach $216.1 billion, a 9% increase year-on-year, higher than the general expectation of 6%. Apple's full-year revenue is expected to reach $418.1 billion, with earnings per share of $7.30, higher than the previous estimates of $394.6 billion and $6.73 per share.
Apple is scheduled to announce its third-quarter earnings after the close of trading on August 1st. Analysts generally expect the company's third-quarter revenue to be $84.12 billion, with earnings per share of $1.33