Wedbush: Apple Inc. (AAPL.US) Q4 performance is expected to be impressive, with the outlook for iPhone 17 and AI layout becoming focal points of attention.

Wedbush releases research report, maintaining its "outperform" rating and $270 target price on Apple Inc. (AAPL.US) before the announcement of its fourth quarter results. Analysts led by Daniel Ives stated that the market will focus on whether Apple Inc. can deliver impressive financial results, with a particular emphasis on a slight recovery in iPhone sales in the Chinese market. Analysts stated that Asia's supply chain data for this quarter shows stable global iPhone demand, with signs of improvement in the Chinese market. This core market has faced growth pressures over the past year, with intensifying competition from local smartphone brands, making its recovery crucial for Apple Inc. Additionally, analysts expect the services business to continue strong growth momentum, becoming a highlight of this quarter's performance. Analysts stated, "This earnings report is just an appetizer before the release of the iPhone 17 in September. Cook's statements on product prospects and demand expectations during the conference call will be the market's focus." Ives and his team predict that with the release of the iPhone 17, accelerated device sales growth will be driven by the release of pent-up demand from global existing users. Analysts estimate that about 20% of the approximately 1.5 billion iPhones worldwide have not been upgraded in over four years. Ives' team stated, "But the biggest suspense currently is Apple Inc.'s artificial intelligence (AI) strategic layout. While the entire tech industry is focused on the biggest technological revolution in 40 years - the commercialization wave of AI, Apple Inc. has yet to take any substantive action." Analysts clearly stated that Apple Inc.'s innovation in the AI field cannot solely rely on internal developments. With a successful AI commercialization strategy estimated to increase Apple Inc.'s valuation by $75 per share, analysts warned that time is running out for Cook to make breakthroughs in this area. "Based on years of tracking research, we understand that Apple Inc. has always favored in-house R&D over acquisitions. However, times have changed - Apple Inc. urgently needs to quickly build its AI ecosystem through acquisitions of quality targets like Perplexity," analysts stated. "This self-evident deal will completely activate Apple Inc.'s AI strategy." Analysts cautioned that investors and developers' patience is wearing thin, and Apple Inc. must make substantial breakthroughs in its AI strategy. While it is expected that Cook will continue to lead Apple Inc. for at least five more years, the company currently faces three major challenges: pricing challenges due to tariffs, political and economic risks in the Indian supply chain, and the absence of a foundational AI strategy - "this chapter will determine Cook's legacy." In conclusion, Ives' team emphasized, "Cook and the Apple Inc. management must confront the new era of AI-driven technological revolution. If they continue to be complacent, they risk leaving a major strategic mistake in the annals of tech history."