Evercore ISI, a leading investment research firm, is bullish on Apple's (AAPL) iPhone growth prospects in 2025. They believe advancements in artificial intelligence (AI) could significantly boost iPhone sales, potentially exceeding current market expectations.

The AI Advantage:

• Evercore analysts anticipate Apple's upcoming AI features, showcased at the recent WWDC event, to significantly enhance the user experience. They believe these features will incentivize faster upgrade cycles, driving iPhone sales in FY25.
• A staggered rollout of AI functionalities, with some features arriving later in the calendar year (CY25), could further extend the upgrade cycle. Positive user experiences and anticipation for new features could keep the momentum going throughout 2025.

Crushing Growth Estimates:

• The current consensus forecast for iPhone revenue growth in FY25 sits at 3%. Evercore believes this is an underestimate. Their analysis suggests that even a one-month reduction in the typical upgrade cycle could translate to a substantial $14 billion increase in iPhone sales.
• Based on this optimism, Evercore has revised their own iPhone revenue growth estimate for FY25 to 7%. They even see the potential for growth to reach double digits if Apple successfully executes its AI strategy.
• To reflect their bullish outlook, Evercore raised their Apple price target to $250 per share.

Can Apple Deliver?

The success of Evercore's prediction hinges on Apple's ability to deliver on its AI promises. A seamless and compelling user experience with the new AI features will be crucial to driving upgrades.

The Future of iPhone:

If Apple delivers on its AI vision, it could usher in a new era of iPhone innovation, potentially leading to a "super cycle" of sustained growth. This would be positive news for Apple investors and a significant development in the smartphone market.

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