Apple price hikes unlikely to hurt demand, JPMorgan says as it raises PT

Recent price increases for Apple's Mac and iPad devices and any potential hikes in iPhone prices are unlikely to significantly dampen consumer demand, according to JPMorgan, which has raised its price target on the iPhone maker and reiterated its Buy rating.

Analyst Samik Chatterjee said several positive catalysts could help Apple's revenue and earnings outperform current market expectations.

JPMorgan raised its price target on the stock to $345 from $325, implying roughly 11% upside from Tuesday's closing price.

According to JPMorgan, Apple's pricing history across its major product categories indicates only a limited relationship between higher prices and shipment volumes over the years.

The brokerage said Mac computers appear to be the most insulated from pricing changes, supported by a wider range of price points as well as growing demand driven by artificial intelligence-enabled features.

The entry-level iPhone and iPad segments are more sensitive to higher prices, JPMorgan acknowledged.

However, it believes any resulting weakness would create only "modest revenue headwinds" when viewed alongside continued demand for Apple's premium devices.

Apple increased prices across several Mac and iPad models last month by between $100 and $300 after soaring memory chip costs pushed up manufacturing expenses.

The company did not raise prices for iPhones.

The stock initially declined following the announcement but has since recovered strongly, gaining more than 10% over the past five trading sessions.

Wall Street remains optimistic

JPMorgan's bullish outlook follows renewed optimism from other analysts.

Last week, Bank of America analyst Wamsi Mohan maintained a Buy rating and a $380 price target on Apple, citing stronger-than-expected App Store revenue growth and continued expansion of its high-margin services business.

Mohan expects services revenue to grow 14% year over year in Apple's fiscal third quarter and believes the company's investments in edge AI and its redesigned Siri architecture could create meaningful monetisation opportunities over time.

Together, the positive analyst commentary has helped improve sentiment around Apple's shares after a relatively subdued start to the year.

Apple explores alternative memory chip suppliers

In other news, to solve its memory cost woes, the company has begun testing DRAM memory chips produced by China's state-backed ChangXin Memory Technologies (CXMT) for devices sold within China while also lobbying the US government for permission to expand the use of the supplier's products, according to a Financial Times report.

CXMT has emerged as the world's fourth-largest producer of DRAM chips, which are widely used in smartphones, personal computers, and servers.

While the company's manufacturing capacity continues to expand, analysts do not expect it to flood the market immediately.

Ray Wang, a memory analyst at SemiAnalysis, told the Financial Times that much of CXMT's production has already been committed to customers.

Nevertheless, the industry remains wary that China's state-backed investment strategy could eventually mirror what occurred in sectors such as solar panels and electric vehicles, where rapid capacity expansion ultimately drove down prices and pressured international competitors.

Foldable iPhone could reshape premium strategy

AAPL is simultaneously preparing what could become its broadest iPhone lineup in years.

According to supply-chain reports cited by Nikkei Asia, the company plans to launch at least five new iPhone models between the second half of 2026 and early 2027, including its first foldable smartphone.

Apple has reportedly increased planned production of the foldable device to around 10 million units from earlier estimates of 7 million to 8 million units.

The handset is expected to carry a price tag of roughly $2,500.

According to The Motley Fool, selling 10 million foldable iPhones at that price would generate approximately $25 billion in annual revenue, representing a meaningful contribution to Apple's flagship product business, although most of that benefit is expected to materialise during fiscal 2027 rather than this year.

The publication said Apple's strategy extends beyond simply introducing a new premium device.

"Put those pieces together, and the foldable looks less like a blockbuster and more like a halo. It probably won't add much to any single quarter's revenue on its own. What it can do, however, is reset the ceiling on iPhone prices, pulling some upgraders into a pricier tier. In a maturing smartphone market, defending the high end while broadening the lineup to reach more price points could be a serious lever," it said.