Morgan Stanley Report: Increase Expected in iPhone and iPad Sales with Apple Intelligence

A new Morgan Stanley report reviewed by BGR predicts a significant increase in iPhone and iPad sales thanks to Apple Intelligence. According to the report, the company expects approximately 235 million iPhone shipments in 2025 and 262 million in 2026.

Analysts’ Predictions:

• Morgan Stanley analysts foresee an 11% revenue increase for Apple in the 2024-2026 period and an increase in earnings per share by 8.70 in 2026.
• Analysts believe in a supercycle ahead for Apple due to reaching the largest installed base of iPhones.
• According to the firm’s estimates, the number of iPhones aged 3 years and older will reach a record level by the end of the 2024 fiscal year, further boosted by Apple Intelligence.

Analysts’ views on Apple Intelligence:

“Apple may promote a multi-year device refresh cycle. The importance of the upcoming device refresh cycle may not have been adequately appreciated by the market. While a significant portion of potential upsides is in North America, there is also significant potential internationally.”

Potential in iPad Sales:

• Only 24% of current iPads support Apple Intelligence, indicating the potential for a mini-cycle in iPad sales.
• iPad replacement cycles could shorten and approach pre-COVID averages, offering potential for increased iPad sales.

According to analysts, growth in iPhone units will account for 36% of Apple’s total revenue growth, with higher iPhone average selling prices and iPad sales making up 26% of the total revenue increase.