11:10 AM EDT, 10/18/2024 (MT Newswires) -- Apple's ( AAPL ) iPhone 16 sales in China are expected to "show a strong rebound over the next year," as an artificial intelligence-driven super cycle begins with this latest model, Wedbush said in a report Friday.

Wedbush analysts cited Counterpoint's latest report, which said iPhone 16 sales made a "robust start" in China, increasing by 20% year-over-year during the first three weeks since launch. Counterpoint's latest report highlighted further evidence of a rebound in iPhone sales in China, Wedbush said, adding that Apple's ( AAPL ) high-end Pro and Pro Max models saw a 44% sales increase compared with last year's iPhone 15.

Wedbush said it believes that Apple ( AAPL ) and Baidu ( BIDU ) will likely partner in the coming months to enhance AI offerings in the Chinese market, while Microsoft ( MSFT )-backed (MSFT) OpenAI's collaboration remains crucial for Apple ( AAPL ) in the US.

"We are continuing to see further indications across the Asia supply chain that this iPhone upgrade cycle could be a historical one setting the stage for a supercycle," as there are approximately 300 million iPhones globally that haven't been upgraded in more than four years, Wedbush said, adding that Apple ( AAPL ) could sell more than 240 million iPhone units in 2025 as the AI-driven upgrade cycle gains momentum.

Wedbush maintained its outperform rating on Apple ( AAPL ) with a 12-month price target of $300.

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