Apple Analysts Predict AI-Driven iPhone Upgrades Will Fuel Record Growth in 2025

Morgan Stanley and Wedbush highlight Apple's AI integration as a catalyst for a major device upgrade cycle and services expansion.

Morgan Stanley has reaffirmed Apple as its 'Top Pick' for 2025, citing AI integration as a key driver of iPhone replacement cycles.
Analysts project a record-breaking 240 to 258 million iPhone shipments in fiscal 2025-26, driven by features like AI-enhanced Siri and ChatGPT integration.
Apple's services segment is expected to grow at an 11.4% compound annual rate through 2027, with potential new AI-based paid offerings adding up to $14 billion in revenue.
Gross margins are forecasted to expand by 50 basis points annually through 2027, supported by cost efficiencies and a favorable product mix.
Apple's stock recently hit an all-time high near $248, with analysts maintaining price targets as high as $300, reflecting optimism about its growth trajectory.