Morgan Stanley Analysts Named Apple a Top Pick Stock and Doubled Their iPhone Expectations — Here's Why

Apple entered nan AI crippled past period pinch Apple Intelligence, a suite of caller features designed to bring AI consecutive to iPhone, iPad, and Mac screens. Apple's AI has a catch though: it only useful connected nan newest iPhones and it could beryllium nan logic why millions of iPhone users pinch older models earnestly deliberation astir upgrading, opportunity Morgan Stanley analysts.

Morgan Stanley analysts named Apple a top-pick banal connected Monday, aft which Apple shares jumped to an all-time high, per Bloomberg. Apple Intelligence is simply a "clear catalyst" for iPhone upgrades and will alteration Apple to waste astir half a cardinal iPhones successful nan adjacent 2 years, expert Eric Woodring stated.

Apple Intelligence is expected to travel retired this autumn for nan iPhone 15 Pro and 15 Pro Max — older iPhones will not person entree to Apple's AI. The update offers AI-generated emojis, a smarter Siri, and nonstop entree to ChatGPT, though immoderate anticipated Siri AI upgrades whitethorn get adjacent year.

Related: Apple Is Expanding What The iPhone Can Do. Here's What's Changing Right Away.

"We judge that location is grounds level of pent-up request entering nan iPhone 16 rhythm later this year," Woodring noted, adding that Apple Intelligence delivers "unique-to-the-Apple-ecosystem" value.

Morgan Stanley previously forecasted that Apple would waste astir 230 cardinal iPhones successful nan aforesaid clip frame, making nan caller prediction much than double nan erstwhile one.

Apple is besides uniquely positioned to beryllium nan AI "base camp" for its customers, "just arsenic it has done for integer contented (iPod) and societal media (iPhone)," wrote Morgan Stanley expert Ananda Baruah.

Apple CEO Tim Cook waves to customers earlier they participate Apple's 5th Avenue store. (Photo by Drew Angerer/Getty Images)

Other analysts astatine different firms person made akin predictions. Wedbush Securities expert Dan Ives told Reuters successful June that much than 15% of existing iPhone users could bargain nan caller iPhone Apple is expected to merchandise this fall.

Related: Apple Labels These 3 Iconic Products 'Vintage,' and Soon-to-Be 'Obsolete'

Ives estimated that 270 cardinal iPhone users person not bought a caller exemplary successful nan past 4 years.

More than half of Apple's wide gross successful nan 2nd 4th of 2024 came from iPhones; Apple has the majority of nan marketplace stock for smartphones successful nan U.S.

At nan clip of writing, Apple was nan largest institution successful nan world pinch a $3.584 trillion marketplace cap. Microsoft, Nvidia, Google, and Amazon followed.

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