Apple's AI Push Could Drive iPhone Upgrades and Services Growth, Analyst Says
Analyst Dan Ives believes Apple's AI strategy could add about $75 per share in value by encouraging iPhone upgrades and expanding Services revenue. He estimates that roughly 375 million iPhones have gone more than four years without an upgrade, while Apple's installed base includes over 2.5 billion active devices and about 1.5 billion iPhones. The opportunity spans health, fitness, finance and gaming, though the financial benefits remain projections.
Analyst Dan Ives sees Apple's AI efforts as a way to lift valuation by about $75 a share, mainly through device upgrades and recurring Services income. He points to an installed base exceeding 2.5 billion active devices, including roughly 1.5 billion iPhones, as a ready audience.
Ives estimates some 375 million iPhones have gone over four years without replacement, which the iPhone 18 cycle might address. He also projects AI features could eventually exceed 15% of Services revenue across health, fitness, finance and gaming, while a foldable "iPhone Duo" may add about 10 million sales. All such figures are estimates, not confirmed results.
If Apple embeds AI across its devices, consumers may gain new health, fitness, finance, and gaming tools, while developers and service providers could face pressure to adapt. Privacy-focused users might benefit if on-device processing is emphasized, though adoption and real-world gains remain uncertain. Investors and suppliers could also be affected by upgrade cycles, but outcomes depend on consumer demand and execution.