According to Wedbush Securities, Apple (AAPL, Financials) has partnered with Alibaba (Baba, Financials) and is in potential collaboration with Baidu (Bidu, Financials) to enhance its artificial intelligence capabilities in China.
In the last year, the company has seen a loss of Huawei’s market share. However, Wedbush hopes Apple’s AI-powered development project will introduce the upcoming iPhone 16 and iPhone 17 to restore the ground to the loss. Analyst Dan Ives believes that the Apple Intelligence Agency is the main driver of iPhone upgrades, especially in areas where the technology has been launched. China should have AI capabilities by April or May.
Wedbush’s project will eventually access 25% of the world’s population through Apple devices. Apple hopes to stimulate China’s expansion by creating an ecosystem of AI-powered applications based on Apple Intelligence. The project should generate new revenue and drive customer improvements.
iPhone revenue fell 1% year-on-year in the past quarter of $691.4 billion, with expectations of $7.14 billion. Big China’s revenue also fell to $18.51 billion.
China still presents obstacles for Apple, but Wedbush noted that the year-on-year comparison is simpler and expects development in the region to begin with the front in the June quarter. Wedbush, based on the foundations of Alibaba’s AI alliance, has handled the company’s strategy properly in China despite constant geopolitical concerns between the United States and China.
Wedbush maintained its outperforming rating on Apple stock and set a price target of $325.
This article first appears on Gurufocus.
