Wall Street has taken another swing at Apple (AAPL), this time with optimism from JP Morgan, even as concerns about iPhone demand linger. On Monday, the firm lifted its price target for Apple from $340 to $360, keeping its Overweight rating. This comes in the wake of reports suggesting lower demand for Apple’s high-end iPhone 18 Pro and Max models. Apple’s shares, which slipped nearly 2.5% following those reports, rebounded somewhat to close around $340.97. The revised outlook reflects confidence in emerging models and strategic supply decisions.
Production Cuts vs. Seasonal Shifts
Recent reporting revealed that Apple instructed some of its suppliers to scale back component production for the iPhone 18 Pro and Pro Max—an action attributed to “soft demand.” Such news rattled investors, but JP Morgan pushes back. The bank asserts these production adjustments align with Apple’s usual approach in managing quarterly supply and don’t necessarily signal weakening demand. Market watchers are acutely tuned to how supply-side moves are being interpreted in the broader demand context.
iPhone Duo & Revenue Expectations
JP Morgan is placing big bets on the iPhone Duo—a more accessible, possibly lower-cost model—to help compensate for what may be a leaner sales window for the iPhone 18 family. The bank anticipates 8.5 million units of the iPhone Duo will ship in the December quarter. To add fuel to that bullish outlook, a separate report suggests Apple has increased its orders for the Duo by around 30%, which could bring production close to 10 million units for the rest of 2026. However, despite these gains, JP Morgan expects iPhone revenue to dip about 2% year-over-year, even though Apple’s overall company-wide revenue may still grow 2%. They also warn that supply constraints and economic headwinds remain real risks.
Putting this all together, JP Morgan’s revised price target reflects a balancing act: acknowledging near-term demand worries while leaning on the newer iPhone Duo and Apple’s diversified revenue streams as stabilizers. Raising the target to $360 signals more than just short-lived confidence—it bets on Apple’s ability to navigate its product rollouts, manage supply dynamics, and keep macro pressures in check. Analysts, investors, and Apple watchers will want to monitor actual Duo sales data, supply chain behavior, and Apple’s guidance in the upcoming earnings call to see whether the optimism turns out to be justified.
What this means: Apple is facing headwinds but also levers to pull. The iPhone Duo could be a buffer against faltering demand. If Apple delivers stronger-than-expected Duo shipments and manages supply smoothly, the $360 target might not just be aspirational. Investors should watch closely how Apple addresses economic pressures and fulfills its new projections.
