Apple is seriously undervalued! iPhone shipments will exceed 500 million units in the next two years

July 16 news, according to media reports, Morgan Stanley analyst Eric Woodring is optimistic about Apple’s prospects and raised Apple’s target share price from $216 to $273. Woodring believes that Apple's artificial intelligence platform "Apple Intelligence" will inspire a new wave of users to upgrade smartphones, tablets and computers. It is expected that iPhone shipments will exceed 500 million units in the next two years. Woodring pointed out that the market had previously underestimated the importance of the upcoming iPhone upgrade cycle, and the launch of Apple Intelligence features will be a significant catalyst for the multi-year upgrade cycle. He predicts that iPhone shipments will reach 235 million units in fiscal 2025 and will increase to 262 million units in fiscal 2026, and 66-69% of iPhone shipments will be new models, driving the annual average selling price of iPhones. 4-5%. In addition, Woodring also mentioned that in addition to AI capabilities, the strong belief in upgrade cycles is also due to three factors that have never been seen before: more than 1.3 billion installed devices, longer upgrade cycles on average of 4.8 years, and The new technology accounts for only 8% of iPhone/iPad installed base. Currently, only 24% of iPads support running Apple Intelligence, which means that the iPad market is also expected to usher in a wave of upgrades. Bank of America analyst Wamsi Mohan also released a research report last week, predicting that generative AI will strengthen the willingness to replace the iPhone, bring about strong sales growth and profit margin expansion, and raised Apple's target price from US$230 to US$256.

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