11:27 AM EST, 01/31/2025 (MT Newswires) -- Apple's ( AAPL ) fiscal Q1 results were generally in line with expectations but the key takeaway was that the iPhone 16 cycle is outperforming the iPhone 15, and the company saw a record number of iPhone upgraders, Wedbush Securities said in a note Friday.

Analysts, including Daniel Ives, said that heading into Apple's ( AAPL ) earnings, many skeptics predicted poor demand for the iPhone 16. However, Wedbush's checks indicated that the iPhone 16 cycle was ahead of iPhone 15, which Apple ( AAPL ) confirmed with strong numbers and a positive outlook on its conference call.

Apple ( AAPL ) ended fiscal 2024 with 2.35 billion active devices, marking 7% year-over-year growth and adding about 150 million new devices. The analysts added that this growing installed base is central to their bullish view on Apple ( AAPL ), as it positions the company to capitalize on the rise of artificial intelligence through its ecosystem.

Apple ( AAPL ) shared data showing that markets with Apple Intelligence, like the US, performed better year-over-year compared to those without it. With Apple Intelligence set to roll out in China, India, and other regions in April, the iPhone 16 cycle is expected to gain momentum in the March and June quarters, the analysts said.

"Overall, this was a clean quarter for Apple ( AAPL ) that marks the beginning of a multiyear upgrade cycle from iPhone 16 to iPhone 17. Apple Intelligence is a phased roll-out which is just the beginning as developers build more apps on top of this platform over the coming year," the analysts said.

Wedbush maintains its outperform rating and $325 price target on the tech giant.

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