Street expectations are too conservative going into this iPhone launch, says Wedbush's Dan Ives

Core Viewpoint - The demand for the iPhone 17 is expected to increase by approximately 5-10% year-over-year compared to the iPhone 16, with a notable influence from the Chinese market [2][7]. Group 1: Demand and Market Sentiment - Pre-order activity for the iPhone 17 is projected to rise by 5-10% year-over-year [2]. - Current market sentiment towards Apple is negative, with expectations for iPhone unit growth being revised from 4-5% to potentially 7-8% [7][15]. - There are 315 million iPhones that have not been upgraded in over four years, indicating significant pent-up demand [8]. Group 2: Strategic Partnerships and AI - The recent DOJ ruling favoring Google is seen as a positive development for Apple, potentially leading to a renewed partnership between the two companies [11][13]. - A deal with Google is anticipated to be announced before the end of the year, which could significantly impact Apple's AI capabilities and market position [14][17]. - The collaboration with Google is crucial for Apple, as it seeks to enhance its AI offerings and maintain competitiveness in the tech industry [16][18]. Group 3: Price Target and Future Outlook - The price target for Apple is set at $270, with potential for it to rise to $350-$400 if AI developments materialize effectively [5]. - The overall market expectations for Apple are considered too conservative, suggesting that upward revisions in forecasts are likely [4][6].