Analyst Ups Apple's Price Target To $256, Says New AI Features Will Encourage Users To Upgrade To Newer iPhones: 'People Were Looking For A Real Reason...'

Bank of America Securities analyst, Wamsi Mohan, has revised his price target for Apple Inc. AAPL upwards to $256 from the previous $230. The adjustment is based on the potential for an upgrade cycle propelled by AI features.

What Happened: On Friday, while appearing on CNBC’s Squawk Box, Mohan said that the incorporation of AI features will encourage users with older iPhones to upgrade.

He noted that the intent to purchase iPhones in 2024 has seen a significant surge following the WWDC event, suggesting that consumers are seeking a compelling reason to upgrade.

“Our survey shows that after WWDC, the purchase intentions of buying an iPhone in 2024 went up meaningfully,” he said, adding, “People were looking for a real reason to upgrade … you now have generative AI coming to the iPhone.”

See Also: As Tesla Surges 44% In 10 Sessions, Bearish Analyst Smells Stock Manipulation: ‘They Keep Buying Puts To Cause Inorganic Buying’

Why It Matters: Earlier this week, Bank of America released a survey result suggesting that the majority of iPhone users are slow to upgrade their devices. iPhone sales are crucial for Apple, representing over 50% of the company's revenue in the second quarter.

The survey, which included over a million iPhone users from the U.S., the U.K., India, and China, revealed that less than a quarter of iPhone users purchased their devices within the past three years.

About 29% of users own an iPhone from the iPhone 13 series, released in September 2021, while 13% own an iPhone from the iPhone 12 series, released in October 2020, and 31% have an even older iPhone, reported Yahoo.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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