09:25 AM EST, 11/29/2024 (MT Newswires) -- Apple ( AAPL ) is poised for a 'new era' of growth with the upcoming launch of the company's updated artificial intelligence features for iPhone 16 ahead of the key holiday season, Wedbush Securities said in a Friday client note.

The technology giant is expected to release its latest 18.2 operating system update next week, according to the brokerage. The company announced in June a partnership with OpenAI's generative AI chatbot, ChatGPT, along with a number of AI features debuting as Apple Intelligence.

"Our view is Apple's ( AAPL ) AI rollout over the next few months kick-starts a new era for Cupertino as ultimately hundreds of AI driven apps get built by developers on top of the building blocks of Apple ( AAPL )

Intelligence," Wedbush said, referring to Apple's ( AAPL ) headquarters in California. "This will be a multi-year AI journey that will define the future for Apple ( AAPL )."

Apple ( AAPL ) rolled out generative AI features for iPhone, iPad and Mac products in October. The 18.2 software update is a "much more important" release as it brings a suite of AI features, including ChatGPT integration and visual intelligence, among others, Wedbush said.

Apple ( AAPL ) hasn't yet released its Apple Intelligence features in its key China market and other countries, with the launch timetable likely to be in April. "We would expect a Chinese AI partner to be formally inked over the next few months as AI features start to roll out in this key China region for Apple ( AAPL ) in the April timeframe," Wedbush analysts led by Daniel Ives wrote in the note.

Black Friday is set to kick off a key holiday season for Apple ( AAPL ) with its flagship iPhone 16 device. The brokerage sees demand for the product as "slightly ahead to generally in line" with expectations globally so far since its launch in September.

The brokerage continues to see further indications that Apple's ( AAPL ) current iPhone upgrade cycle could be a "historical one," as it estimates that roughly 300 million iPhones globally have not been upgraded in more than four years. Wedbush projects the company to sell over 240 million iPhone units in fiscal 2025.

"We believe the success of iPhone 16 with a strong holiday season ahead will be the launching pad for a renaissance of growth in Cupertino over the next 12 to 18 months," Ives said.

Wedbush maintained its outperform rating on Apple's ( AAPL ) stock and reiterated the 12-month price target of $300.