NEW YORK, Oct. 18, 2024 In the first three weeks, iPhone 16 sales in China have surged a hearting 20% YOY, underscoring a proverbial "renaissance of growth" for Apple (AAPL, Financials), says Wedbush Securities. Strong performance highlighted by analyst Dan Ives points to a major comeback in the Chinese market. Friday premarket trade for Apple climbed 1.8% on the report.

"Based on sales up 44% from last year's iPhone 15, Apple's strength comes from the higher-end Pro and Pro Max models," Ives said in his report. With Ives finding greater assurance following his recent Asia tour and supply chain checks, he linked the expansion to the start of an AI-driven super cycle headed by the iPhone 16. Maintaining his Outperform rating and $300 price target on Apple, Ives again underscored Apple's potential for partnering with Baidu on AI in China, effectively augmenting iPhone improvements.

Looking ahead, as the AI-driven upgrade cycle picks steam, Ives projected Apple might sell upwards of 240 million iPhones in fiscal 2025 while pointing out that a healthy 100 million iPhones are due for upgrades in 2025.

This article first appeared on GuruFocus.