Analysts see Apple AI efforts boosting sales for a business you might not expect

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Revenue for Apple's services unit could see a 5% to 11% increase in fiscal 2027, according to Morgan Stanley.

Wall Street analysts predict that iPhone users will buck up for artificial intelligence in more ways than one. The news Morgan Stanley said Monday that Apple's services business could get a boost from customers willing to pay for artificial intelligence capabilities. That's one of the major takeaways from the research firm's annual Alphawise Smartphone Survey.

Wall Street, however, has been expecting an upgrade cycle for more than just iPhones. Other smartphone brands and personal computers are in the mix as well. That's because many consumers bought new electronic devices in 2020 during the start of the Covid pandemic. Because replacement cycles on these items are typically 4 to 5 years, users should be looking to trade up with newer models. This cycle has a "few idiosyncrasies" that make it unique, Melius said.

 

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