International Data Corporation (IDC) rekindled optimism in smartphone makers like Apple Inc (AAPL  ) with its latest market update. It expects global smartphone shipments to climb by 5.8% to 1.23 billion units in 2024, recuperating from two challenging years.

The research firm flagged the popularity of budget Android (GOOG  ) (GOOGL  ) smartphones in China and emerging markets and the luxury markets' acceptance of generative artificial intelligence smartphones as potential catalysts.

  • IDC expects Android to grow nine times faster at 7.1% than Apple iOS due to higher competition in China.
  • However, IDC highlighted GenAI's success with the upcoming iPhone 16 and Apple's capability to forge local AI partnerships in China as potential growth drivers for Apple.
  • IDC expects the iOS trajectory to improve in 2025 with 4% year-over-year growth courtesy of Apple Intelligence.
  • IDC expects GenAI smartphones to win an 18% market share by 2024, driven by the premiumization trend.
In 2023, Apple ramped up its China-based suppliers and manufacturing sites and launched a new Apple store in Shanghai, reflecting its keenness in the market.

CEO Tim Cook attended the China Development Forum in Beijing. Apple also discussed integrating Baidu Inc's (BIDU  ) advanced generative AI technology into its devices within China.

Apple stock gained 27% in the last 12 months. Investors can gain exposure to Apple through Vanguard Div Appreciation ETF (VIG  ) and iShares Core S&P Total U.S. Stock Market ETF (ITOT  ).

Will Apple Stock Go Up?

When trying to assess whether or not Apple will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $240.54 on Apple. The Street high target is currently at $300.0 and the Street low target is $164.0. Of all the analysts covering Apple, 38 have positive ratings, 7 have neutral ratings and 3 have negative ratings.In the last month, 16 analysts have adjusted price targets.

The average stock market return is approximately 10% per year. Apple is 22.83% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

Price Action: AAPL shares traded higher by 0.13% at $228.32 premarket at the last check on Wednesday.