Evercore ISI Maintains Outperform on Apple, $365 Price Target

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $365 price target on Apple (NASDAQ: AAPL).

“According to Bloomberg, China’s Cyberspace Administration approved Apple’s on-device generative AI service for mainland China, clearing the biggest regulatory hurdle for Apple Intelligence in the world’s largest smartphone market.

The China version will be localized around domestic AI partners, as Apple plans to integrate Alibaba’s Qwen AI across iOS, iPadOS, macOS and visionOS, while Baidu also confirmed its technology will power Apple’s China AI services.

This differs from Apple’s planned U.S./global Apple Intelligence architecture, where Apple says its next-gen Apple Foundation Models were custom-built in collaboration with Google’s Gemini models, running on-device and through Apple’s Private Cloud Compute.

China requires generative AI services to complete regulatory filings before public availability, and this approval gives Apple a path to bring Apple Intelligence to a market where local rivals like Huawei and Xiaomi have already been competing with AI features.

Recall, Apple Intelligence had not previously been available in mainland China, and Apple has already faced China-specific regulatory friction recently, as the iPhone Air launch last fall was delayed in China while Apple awaited approval for eSIM support.

With new Apple Intelligence features and Siri AI expected later this year, the main remaining regional regulatory overhang is Europe, where Apple says Siri AI will not launch on iOS 27 or iPadOS 27 in the EU due to Digital Markets Act concerns.

Net/Net: Today’s approval is a meaningful win for Apple, as it unlocks the largest smartphone market for the rollout of Apple Intelligence and supports the company’s upcoming Siri AI launch cycle.

The next major regional hurdle remains the EU, where DMA-related concerns are still delaying Siri AI on iPhone and iPad. Maintaining our OP and $365 target.”

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