- Dan Ives of Wedbush Securities defended Apple (AAPL) on CNBC’s “The Exchange,” arguing its 1.5 billion iPhones and 2.4 billion iOS devices position it to capture 20-25% of the consumer AI market, predicting new stock highs within 12-18 months despite delays shifting 8-10 million units to 2026.
- He highlighted Apple’s role as a “toll collector” in AI, profiting from third-party apps on its App Store – potentially adding $10-12 billion in services revenue by 2027 – whether users rely on external AI tools or an eventual Siri upgrade.
- Ives countered bearish views and John Gruber’s critique, asserting Apple’s platform strength ensures it wins in AI, with Tim Cook expected to showcase this dominance at WWDC in June, leveraging 325 million iPhones due for upgrades.
Dan Ives, Wedbush Securities’ global head of tech research, appeared on CNBC’s “The Exchange” to counter the pessimism surrounding Apple (AAPL), arguing that the company’s AI strategy is poised for long-term success despite short-term hiccups. With Apple’s stock up about 1% on the day of the interview, Ives emphasized the power of its massive install base – 1.5 billion iPhones and 2.4 billion iOS devices – positioning it to capture 20 to 25% of the global consumer AI market. He dismissed bearish concerns about delays, noting that while eight to 10 million iPhone units may shift from 2025 to 2026, the upgrade cycle, with 325 million iPhones ripe for replacement, remains a potent driver, suggesting any softness in sales is already priced into the stock.
Ives painted Apple as a “toll collector” in the AI ecosystem, benefiting from the proliferation of third-party apps like Grok and ChatGPT on its App Store, which could add $10 to $12 billion annually to its services revenue by 2027. He acknowledged the desire for an end-to-end Siri-driven AI experience but argued Apple wins either way – whether users stick with external apps or shift to an enhanced Siri – due to its platform dominance. Responding to criticism from analyst John Gruber, who urged CEO Tim Cook to push engineers harder amid a delayed AI rollout, Ives agreed that Apple should focus on being the go-to AI platform rather than chasing flashy innovations, a stance he expects Cook to reinforce at WWDC in June.
The discussion highlighted Apple’s resilience amid skepticism. Ives, who in a new note reiterated his ‘Outperform’ on the stock, predicted new all-time highs within 6 to 18 months, driven by the consumer AI revolution flowing through Cupertino. Even with delays, he sees the bears misjudging Apple’s entrenched ecosystem and its ability to monetize AI, whether through its own tools or the hundreds of apps leveraging Apple Intelligence, solidifying its perch atop the tech mountain.
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