Apple Remains Top Tech Pick: In a recent analysis of the tech sector, Wedbush analysts expressed confidence in Apple (AAPL), designating it as their top tech pick. Dismissing the notion of an ‘iPhone China demise,’ the analysts labeled it as a fictitious narrative propagated by pessimists, asserting that the actual situation is quite the opposite.
According to their note to clients, the analysts highlighted robust underlying growth in mainland China for the December quarter. This conclusion was drawn from their assessments of Asia’s supply chain and the pivotal role it plays in supporting the core iPhone franchise.
Emphasizing the strength of the iPhone 15 upgrade cycle, the analysts anticipate a smooth and drama-free holiday season, contrasting it with the supply chain challenges of the previous December. Despite increased competition, particularly from Huawei in China, they maintain a positive outlook, suggesting that Apple is well-positioned for sustained success.
The analysts also underscored the resurgence of Apple’s Services business, projecting a steady double-digit growth rate. They estimated the standalone value of the Services business to be between $1.5 trillion to $1.6 trillion. This optimistic valuation reflects their belief in the consistent expansion of Apple’s services ecosystem.
Looking ahead to 2024, Wedbush anticipates a resurgence in iPhone growth for Apple, emphasizing the potential for the company to further capitalize on its substantial installed user base. In summary, the analysts express confidence in Apple’s trajectory, foreseeing a strong performance in the coming year as the tech giant continues to innovate and monetize its existing user base.
