JPMorgan has lifted its price target on Apple (NASDAQ: AAPL) to $255 with an ‘Overweight’ rating as the tech giant gears up for its upcoming iPhone event.
The new target implies an upside of nearly 10% from the last market closing price of $232.
Analyst Samik Chatterjee noted that while Apple’s fall product launches typically hold few surprises due to well-telegraphed supply chain details, this year’s lineup could deliver modest upside in both hardware and pricing.
Chatterjee pointed to two key drivers for Apple’s performance in the next fiscal year. The first is the introduction of the iPhone Air, a slimmer model expected to attract a broader base of consumers, positioned closer to the entry-level models than the Pro versions.
Supply chain estimates suggest Apple is targeting 10 to 15 million units for the second half of 2025, though stronger-than-expected demand could push those figures higher.
The second driver is pricing strategy, particularly in China. Smartphones priced below CNY 6,000 (about $840) qualify for a 15% subsidy, giving Apple an edge if it positions the iPhone Air and other models within this range. Chatterjee emphasized that success in leveraging this subsidy could support medium-term growth through the end of the year.
Overall, JPMorgan sees Apple entering its next cycle with room for upside beyond current expectations with the upcoming product lineup.
Apple stock fundamentals
Meanwhile, after months of volatility, Apple stock is regaining momentum, with new AI-powered features across its devices potentially sparking a fresh iPhone upgrade cycle.
At the same time, Apple’s services segment, including the App Store, Apple Music, and iCloud, continues to expand, delivering higher margins and steady recurring revenue from more than two billion active devices. A $100 billion buyback program further supports shareholder value by boosting earnings per share.
However, despite the optimism, risks remain. Slowing iPhone adoption remains the primary concern, particularly as competition from Chinese smartphone manufacturers intensifies.
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