JPMorgan: Price increases won't hurt Apple. The bank sees an 11% upside potential for the stock
JPMorgan believes that Apple will exceed market expectations despite raising the prices of its products / Photo: Shutterstock.com / sergey causelove
Investors' concerns about rising prices for Apple devices are overblown, according to JPMorgan analyst Samik Chatterjee, as quoted by Seeking Alpha. He reaffirmed his "buy" rating on the company's stock and raised his price target to $345. The new target is 6% higher than the previous one and implies an 11% upside potential relative to the closing price on July 7.
In late June, Apple announced price increases of $100–200 for several of its devices. This came after the company’s CEO, Tim Cook, warned that it was no longer possible to keep prices down due to a sharp rise in the cost of components, primarily in short supply memory chips. “This is a once-in-a-century flood. In more than 40 years in the business, I’ve never seen anything like this in any industry,” he said in an interview with The Wall Street Journal.
Smartphones were not affected by the price hike, but Apple’s decision has heightened concerns about the extent of further price increases, which are likely to accompany the launch of the iPhone 18 lineup, according to a JPMorgan analyst. At the same time, he is confident that demand for premium iPhones and Mac computers remains relatively resilient to price increases, so the company’s revenue and profits may exceed current market expectations. The investment bank has reaffirmed its earnings forecast for Apple in fiscal year 2027 at $9.85 per share.
"The company is in a strong position to raise prices without compromising device performance and without the risk of increasing customer churn, given its growing focus on higher-income consumers," Wedbush analyst Dan Ives said earlier.
This article was AI-translated and verified by a human editor
