JPMorgan Raises Apple Target; Price Hikes Unlikely to Dent Demand

JPMorgan raised its price target on Apple to $345 from $325 and reiterated a Buy rating, implying roughly 11% upside from the latest close. The bank wrote to clients that recent price increases for several Mac and iPad models and potential iPhone hikes are unlikely to materially reduce consumer demand.

Analyst Samik Chatterjee wrote that Apple’s historical pricing shows a limited link between higher prices and shipment volumes across major product categories. JPMorgan found Macs to be the most insulated from price moves because Apple offers a wider range of models and because demand for AI-enabled features is increasing. Entry-level iPhones and iPads display higher price sensitivity, and JPMorgan added that any weakness in those segments would likely create only “modest revenue headwinds” compared with demand for premium devices.

Apple raised prices on several Mac and iPad models last month, increasing retail tags by about $100 to $300 after memory chip costs rose. The company has not raised iPhone prices. The stock initially fell after the price adjustments but recovered, gaining more than 10% over the five trading sessions before JPMorgan’s note.

Other analysts remain positive. Bank of America analyst Wamsi Mohan retained a Buy rating and a $380 target, citing stronger-than-expected App Store revenue and continued growth in Apple’s higher-margin services business. Mohan projected services revenue could rise roughly 14% year over year in Apple’s fiscal third quarter and pointed to the company’s work on edge artificial intelligence and a redesigned Siri as potential future revenue sources.

To address rising memory costs, Apple has begun testing DRAM chips from ChangXin Memory Technologies for devices sold in China and is seeking U.S. government approval to expand use of the supplier’s parts. ChangXin has increased production capacity, though industry contacts say much of that output is already committed to customers. Observers note that rapid, state-backed capacity growth in other Chinese sectors later pushed down prices and pressured international competitors.

Supply-chain reports indicate Apple plans at least five new iPhone models between the second half of 2026 and early 2027, including its first foldable iPhone. Planned production for the foldable has been raised to about 10 million units from earlier estimates of 7 million to 8 million. The handset is expected to carry a premium price near $2,500; selling 10 million units at that price would equal about $25 billion in annual revenue, with most of that impact likely in fiscal 2027. Analysts say the foldable may serve as a halo product that raises the ceiling on iPhone pricing and shifts some upgraders into a higher price tier rather than delivering large-volume revenue immediately.

JPMorgan’s higher target reflects the firm’s view that Apple’s mix of established products, growing services and investments in AI-related features will offset short-term pressures from component costs and selective price increases. The bank expects those factors to support the company’s revenue and earnings in the coming quarters.