BofA: Apple’s iPhone 16 to kick off software-driven upgrade cycle

BofA Securities analyst Wamsi Mohan on Thursday reiterated a “Buy” rating and $256 price target on Apple shares as he expects iPhone 16 to kick off software-driven upgrade cycle.
The analyst wrote in a note to clients:

Apple (AAPL) shares are up 15% YTD, and flat over the past 60 days as we head into Apple’s event entitled “It’s Glowtime,” scheduled for Monday, September 9th at 1PM ET.
We expect launch of the iPhone 16 line-up including Apple Intelligence. We expect staggered availability of Apple Intelligence with rollout first in the U.S. followed by other regions.
We see this launch as the start of a multi-year software driven upgrade cycle and model 241mn iPhones for F25 (+8% y/y), and 257mn for F25 (+7% y/y). A factor that can impact iPhone unit sales are carrier promotions, and we expect at least a similar level of promotions as last year. If iPhone 16 starts shipping on Sep 20th, then that implies 9 ship days in F4Q24 for the new phones, similar to last year.
Maintain Buy.”

MacDailyNews Take: Yes, but do not discount the possibility of a hardware impetus for upgraders, as display size is a proven iPhone sales draw. Apple is expected to increase the display size of the iPhone 16 Pro from 6.1 inches to 6.3 inches and iPhone 16 Pro Max from 6.7 inches to 6.9-inches.

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The post BofA: Apple’s iPhone 16 to kick off software-driven upgrade cycle appeared first on MacDailyNews.