As Apple Inc (NASDAQ:AAPL) prepares to unveil its highly anticipated iPhone 16 lineup tomorrow, prominent Wall Street analyst Dan Ives of Wedbush Securities is forecasting a potential watershed moment for the tech giant.

What Happened: In a research note released on Sunday, Wedbush claims that the iPhone 16 launch could kick off "Cupertino's biggest upgrade cycle in its history."

Ives, known for his bullish stance on Apple, cites the integration of artificial intelligence as a key driver for this predicted supercycle.

"This iPhone 16 release is all about Apple Intelligence and the unleashing of the consumer AI Revolution through Cupertino," Ives writes. He estimates that approximately 20% of consumers worldwide will ultimately access and interact with generative AI apps through the Apple ecosystem in the coming years.

The Wedbush analyst's optimism is further bolstered by his supply chain checks, which indicate stronger-than-expected initial shipments for the iPhone 16. Ives projects shipments closer to 90 million units, surpassing earlier Street expectations of 80 to 84 million. This represents a double-digit year-over-year increase.

Looking ahead, Ives believes Apple could sell north of 240 million iPhone units in fiscal year 2025 as the AI-driven upgrade cycle takes hold. He maintains an outperform rating on Apple stock with a price target of $285.

Ives also highlights the strategic importance of Apple's AI push, suggesting that the company will become "the gatekeeper of the consumer AI Revolution." He expects developers to create hundreds of generative AI-driven apps for the Apple ecosystem within the next 6 to 12 months.

As for the iPhone 16 itself, Ives anticipates larger displays for the Pro models, the introduction of the A18 chip (with an A18 Pro variant for higher-end models), enhanced battery life, and improved camera technology. He expects Apple to maintain similar price points to the iPhone 15 to encourage widespread adoption of AI-enhanced devices.

With the launch event set for tomorrow at Apple Park, all eyes will be on CEO Tim Cook and his team to see if they can deliver on the lofty expectations set by analysts like Ives. If his predictions hold true, we may indeed be witnessing the dawn of what Ives calls "the next leg of the Apple growth story."

Why It Matters: The iPhone 16 launch, dubbed the "Glowtime" event, has been a focal point for tech enthusiasts. The event, is expected to unveil the iPhone 16 series alongside potential updates to Apple Watches and AirPods.

Moreover, the new iPhone series will be powered by ARM Holdings' next-gen AI chip technology, enhancing its AI capabilities.

In addition, Apple may discontinue all three models of EarPods, including USB-C, as hinted by a researcher on Sunday. This move could further streamline Apple's product lineup, focusing consumer attention on the new iPhone 16 and its advanced features.

Apple Glowtime logo courtesy of Apple.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.