Apple is set to release its latest quarterly earnings report on Thursday after the market close.
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AAPL stock dipped in July but the stock has still seen a strong recovery since the lows in April.
The latest results will be important for the iPhone maker, which has struggled with weak demand and rising competition in China over the past year. Analysts are positive that the company can see a return to growth in the third quarter.
Wall Street analysts also have an eye on growth in Apple Intelligence, the company’s upcoming AI system, alongside demand for the iPhone 16.
“iPhone demand is likely stabilizing in China, according to supply-chain checks Wedbush conducted in Asia. That could set up the company to initially ship around 90 million iPhone 16s, higher than the consensus of 80-84 million,” Wedbush analysts said.
Growth could also come from AI products, with the company’s OpenAI partnership. The company said AI tools added to Apple products could add another $30 to $40 each share of Apple stock.
“We strongly believe June will be the last negative growth quarter for China with a growth turnaround beginning in the September quarter. China remains the linchpin of growth for Apple and now this key region is set to see growth once against starting with iPhone 16 in our view,” Wedbush said.
Morgan Stanley are also upbeat with a record 700 million iPhones that are at least three years old by the end of the fiscal year. That could provide Apple with a strong upgrade cycle. Apple Intelligence could help the firm sell as many as 235 million iPhones over the 2025 fiscal year, followed by 262 million iPhones in the 2026 fiscal year, analysts said.
Dan Ives of Wedbussaid Apple could see “monumental” demand due to the upgrader cycle. If Apple can expand its AI capabilities across 2.2 billion active devices, it could be a big player in the consumer AI space.
