Bullish analysts share the sentiment that a major iPhone upgrade cycle is coming thanks to software updates from Apple Intelligence.

Apple announced Apple Intelligence, its gen AI software, in June. Wall Street was excited that these updates would lead to a jump in the number of upgrades, as only newer iPhone models can use the software. However, Apple Intelligence only officially launched on Monday, just over a month after the iPhone 16 hit stores. Also, not all software features are fully available yet, but they will be rolled out in the coming months.

Despite the lengthy rollout of Apple Intelligence, optimistic analysts still believe the software will drive demand for devices that can run it.

“We expect strong iPhone performance for the September quarter and expect relatively optimistic commentary on iPhone demand from Cook & Co. in December, despite many of the bears recently shouting fire in a crowded room over iPhone 16 sales,” said Wedbush analyst Dan Ives. wrote in a note on October 27. He rates the stock Outperform with a $300 price target.

There are some bulls who disagree that December quarter expectations will be strong. That includes TD Cowen analyst Krish Sankar, who rates Apple a Buy with a $250 price target.

“AAPL stock sentiment heading into the September ’24 (F4Q24) results is clearly negative given the confluence of iPhone 16 builds in the second half of 2024 slightly below 15, soft Chinese demand and regulatory risks to the services sector,” he wrote. . He expects the company to provide December quarter guidance that is in line or below expectations.

Meanwhile, Barclays analyst Tim Long rates the stock as underweight with a price target of $186.

“We don’t expect a major AI cycle because current AI features are not differentiated and our analysis of previous iPhone cycles doesn’t really suggest a major upgrade cycle,” he wrote.