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Evercore: Apple shareholders just need to be patient; boom in AI-driven iPhone sales looms

Monday February 12, 2024. 03:28 PM , from Mac Daily News
After being surpassed by AI-focused Microsoft as the world’s most valuable company, Apple shareholders seem to be stuck in a holding pattern just under $200 per share. Evercore analysts believe that AAPL stockholders just need to be patient as they could be rewarded with a boom in AI-driven iPhone sales as Apple works to catch up to rivals in AI.
Adam Clark for Barron’s:

Apple has been relatively tight-lipped about its AI plans compared with big technology peers such as Google-parent Alphabet and Microsoft. However, Evercore’s Amit Daryanani expects that to change, as the necessary calculations for AI shift from taking place on cloud servers to being performed on the ‘edge’, or on mobile devices.
“We think Apple is best-positioned to bring AI inference to the edge via the iPhone, and if executed correctly, could drive shorter replacement cycles, additional pricing opportunities and a stronger moat around the business”, Daryanani wrote in a research note on Sunday.
The Evercore analyst said an AI-driven iPhone —for example featuring a revamped Siri digital assistant — could prompt customers to replace their smartphones more frequently. Daryanani noted that with users currently replacing their iPhones roughly once every 44 months, if Apple could bring that down by one month then it would imply selling 25 million more units, adding $7 billion to its revenue and between 30 and 40 cents to its earnings per share.

MacDailyNews Take: In his note to clients, Daryanani reiterated Evercore’s $220 AAPL target price on Apple stock with an “Outperform” rating.
See also:
• Microsoft, not Tim Cook’s Apple, is now the most valuable company ever – February 9, 2024
• Apple reportedly to ‘re-examine’ Artificial Intelligence development – March 8, 2023

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