Apple's Stock Target Raised Due to Anticipated AI-Driven iPhone Upgrade Cycle

Bank of America analysts predict a significant iPhone upgrade surge, driven by new AI features and an aging user base.

Bank of America revised Apple's stock price target from $230 to $256, citing confidence in a multi-year upgrade cycle.
A recent survey showed that 73% of iPhone users still have models from the iPhone 13 series or older.
New generative AI features, including Apple Intelligence, are expected to drive the upgrade demand.
iPhone sales accounted for over 50% of Apple's revenue in the second quarter, highlighting the importance of this upgrade cycle.
Customer loyalty remains strong, with 58% of current iPhone users planning to buy another iPhone for their next upgrade.