Wedbush Analysts Bullish on Apple’s Future Despite China Headwinds: Brighter Days Ahead

Wedbush maintains a bullish outlook on Apple despite recent share declines.

Analysts acknowledge the current “dismal” sentiment, particularly due to China-related challenges.

Wedbush’s Daniel Ives compares the negative sentiment to a “horror show” while emphasizing optimism in the long term.

The primary concern is sluggish iPhone sales in China, contributing to apprehensions about Apple’s performance.

The bullish stance is supported by four key factors outlined by Wedbush.

First, they believe the 2024 iPhone estimates are achievable, and 2025 Street estimates are considered conservative.

Second, there’s an anticipation of substantial pent-up demand during the iPhone upgrade cycle, potentially exceeding 270 million units by iPhone 16.

Third, the Services segment is deemed robust, showing double-digit growth and providing crucial valuation support.

Analyst Ives highlights the integration of AI into Apple as a positive development, manifesting in new applications.

Despite the current challenges, Wedbush remains confident that “brighter days will be ahead” for Apple.

However, the immediate dark cloud over Apple’s prospects is the China story.

In summary, Wedbush expresses confidence in Apple’s future, citing positive factors that outweigh current challenges, especially in the context of the Chinese market.

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