Key insights
- BofA lowered its Apple price target slightly to $320 based on expectations for a 2026 foldable iPhone launch. The report suggests strong initial demand, particularly from China and Pro/Pro Max users. Supply chain preparations indicate production of 10-20 million units. Bernstein SocGen reiterated its outperform rating with a $340 target. The news is mildly bullish due to the potential for a new product category driving future revenue, offset by the distant launch date.
Investing.com - BofA Securities lowered its price target on Apple Inc. (NASDAQ:AAPL) to $320 from $325 while maintaining a Buy rating on the stock. Trading at $247.99 with a market capitalization of $3.64 trillion, Apple appears overvalued according to InvestingPro Fair Value analysis.
The firm’s checks in Asia indicate Apple will likely introduce its first foldable iPhone in 2026. The device is expected to feature a book-style foldable design with an inner screen measuring 7.7 to 7.8 inches and thickness under 10 millimeters when folded.
The first-generation foldable is expected to include Touch ID but will not have Face ID or a physical SIM card. BofA Securities anticipates strong initial demand given the major form factor change.
The supply chain is preparing for production of 10 million to 20 million units. This volume exceeds competing products, including Samsung’s foldable devices which ship in single-digit millions.
BofA Securities expects higher demand for Apple’s foldable from China and from Pro and Pro Max users seeking larger screens. The firm cited multiple catalysts including AI at the edge, the foldable launch, and strong capital return. Apple maintains a "GOOD" financial health score with a robust 32.6% return on assets, positioning the company well for innovation investments. For deeper insights into Apple’s valuation and growth prospects, the comprehensive Pro Research Report is available on InvestingPro.
In other recent news, Apple has unveiled the second generation of its AirPods Max over-ear headphones, priced at $549. This marks the first significant update since their initial launch in 2020, featuring enhanced noise cancellation and new features aimed at maintaining competitiveness in the premium headphones market. Additionally, Bernstein SocGen Group has reiterated its Outperform rating for Apple, maintaining a price target of $340. The firm noted Apple’s strategy of expanding its product portfolio with varied price points, a tactic likened to Samsung’s approach from 2009 to 2013. Meanwhile, Apple COO Sabih Khan visited the company’s research lab in Shenzhen and is meeting with supply chain partners, as reported by the 21st Century Herald. In another development, Google has started testing a dedicated Gemini AI app for Apple Mac computers, positioning itself as a competitor to existing Mac apps like ChatGPT and Claude. The beta version of this app includes only essential features, allowing Google to gather feedback and address issues before a broader release.
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