11:19 AM EDT, 08/27/2024 (MT Newswires) -- Apple's ( AAPL ) iPhone 16 launch event on Sept. 9 will likely be the start of the company's "biggest upgrade cycle in its history with AI now on the doorstep," Wedbush said in a note on Tuesday.

"We are seeing more indications across the Asia supply chain over the past few weeks this iPhone upgrade cycle could be a historical one setting the stage for a supercycle as currently we estimate roughly 300 million iPhones globally have not upgraded in over 4 years," Wedbush analysts said.

Wedbush said it now expects initial iPhone 16 shipments at more than 90 million compared with original Street estimates between 80 million and 84 million.

"We believe AI technology being introduced into the Apple ( AAPL ) ecosystem will bring monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share and result in Apple ( AAPL ) reaching the $4 trillion+ market cap," the analysts said. Wedbush also said it expects developers to build "hundreds of generative AI driven apps" over the next year that will help Apple ( AAPL ) establish the "core building blocks of the consumer AI tidal wave" that is expected with the launch of the iPhone 16.

The investment firm said that Apple ( AAPL ) may sell over 240 million iPhone units in FY 2025.

Wedbush kept its outperform rating on Apple ( AAPL ) and $285 price target.

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