Apple (AAPL) is expected to post "good headline" numbers and a slight rebound in China iPhone sales when it reports fiscal Q3 results Thursday, Wedbush said in a note.
Global iPhone demand appeared stable in Q3, with China showing some recovery after a year of competitive pressure from local smartphone makers, the investment firm said Wednesday.
The bigger focus will be on the iPhone 17 launch in September, which could drive faster unit growth as about 20% of 1.5 billion iPhones worldwide have not been upgraded in over four years, according to the note.
Investors remain concerned about Apple's slow progress in artificial intelligence while other tech giants aggressively pursue AI monetization, Wedbush analysts noted.
Analysts said Apple may need to acquire AI company Perplexity, possibly in a $40 billion deal, to accelerate its AI strategy and enhance Siri, according to the note.
Wedbush maintained an outperform rating on the stock with a $270 price target
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