Apple shares hit a record high after Morgan Stanley raised its price target and called the company a “top pick” for its efforts in artificial intelligence. Experts predict significant growth in sales of Apple devices in the coming years.
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In an attempt to catch up with competitors such as Alphabet (Google’s parent company) and Microsoft, Apple last month introduced its artificial intelligence service “Apple Intelligence”, prompting many customers to upgrade their devices to be able to use the new technology. At the same time, Apple shares, which have risen almost 20% since the beginning of the year, quickly reached $236.30, raising the company’s market capitalization to $3.62 trillion – the highest in the world at the moment.
«”Apple Intelligence is a clear catalyst for increasing iPhone and iPad shipments,” Morgan Stanley analysts said. They noted that the new technology is compatible with only 8% of existing iPhones and iPads, while the total number of Apple smartphones in use is 1.3 billion units. Experts predict that the company could sell about 500 million iPhones over the next two years, Reuters notes.
Financial services firm Morgan Stanley, which previously expected Apple to sell 230 million to 235 million iPhone units annually over the next two years, has now raised its share price target from $216 to $273, recommending the company as a strong investment choice.
Experts say Apple’s investments in artificial intelligence could be a key driver of sales growth and strengthening the company’s position in the smartphone market in the coming years and expect both Apple and Samsung to lead the recovery of the global smartphone market this year.