Apple stock rises as analysts expects iPhone Duo to fuel growth

Apple shares AAPL gained 1.1% in trading on Thursday after the company unveiled its iPhone Duo, iPhone 18 Pro and iPhone 18 Pro Max at its latest product event.

Wall Street analysts largely viewed the launch constructively, although opinions differed on the strength of the iPhone 18 product cycle and the impact of higher component costs.

Citi maintained a Buy rating on Apple with a $365 price target, while Bank of America kept its Buy rating but lowered its target to $370 from $380.

Morgan Stanley retained an Overweight rating with a $360 target, while GF Securities maintained a Hold rating.

Citi calls iPhone Duo a major hardware launch

In a note to investors cited by TheFly, Citi described the iPhone Duo as "Apple's biggest new hardware category since the watch and AirPods."

The firm said Apple had already increased prices for the iPhone 16 and iPhone 17 by at least $100 to offset higher memory component costs.

Citi viewed pricing for the iPhone 18 lineup and the foldable model as broadly consistent with its expectations.

Bank of America analyst Wamsi Mohan also took a constructive view while trimming his Apple price target to $370 from $380.

Mohan said the event was the first major product launch under CEO John Ternus and highlighted Ternus's focus on Apple's core values and customer-focused product development.

Mohan also noted that the new iPhone prices were below BofA's estimates.

While that could support stronger unit sales, he said it could also put pressure on gross margins as memory and other component costs rise.

Morgan Stanley sees AI at center of strategy

Morgan Stanley analyst Erik Woodring said Apple was positioning the iPhone as an intelligent personal hub, with the iPhone Duo and Siri AI central to the strategy.

Woodring said continued product innovation, semiconductor and software differentiation, and pricing factors could support above-trend growth into fiscal 2027.

He also said the event differed from previous launches because of the change in leadership and the range of new offerings.

According to Woodring, Apple's first 2nm A20 SoC could deliver a significant performance improvement, while the iPhone Duo could reshape the premium smartphone market.

He also highlighted Apple's hardware and software integration and the expected role of Siri AI in making the iPhone a centralized intelligence hub.

Analysts differ on strength of iPhone 18 cycle

GF Securities analyst Henry Huang offered a more cautious assessment, calling the $100 price increase for the iPhone 18 Pro compared with previous models better than feared.

Huang pointed to uncertainty around the iPhone 18 Pro cycle, including limited hardware upgrades and potential margin pressure.

He said the iPhone Duo could partly offset those concerns but described the iPhone 18 series as a modest product cycle.

J.P. Morgan analyst Samik Chatterjee said the event was largely in line with his expectations. He noted that investors may have anticipated larger price increases because of higher memory costs.

Chatterjee said the pricing decisions could support iPhone volumes.

He also expects Siri AI features, powered by Apple's foundational models and scheduled for beta release in mid-September, to contribute to iPhone revenue growth.

Supply-chain feedback from the initial weeks of orders could provide another catalyst for Apple shares as investors assess demand for the new models.