JP Morgan has raised its price target for Apple stock by $20, moving from $340 to $360, while maintaining its Overweight rating on AAPL shares. The adjustment comes just days after Apple’s stock dropped roughly 2.5% following Nikkei Asia reports that the company had instructed select suppliers to reduce component production for the iPhone 18 Pro and iPhone 18 Pro Max due to soft demand.
Despite the production cut concerns, JP Morgan argues that the reported reductions align with Apple’s typical production patterns and do not necessarily signal an unexpected decline in consumer demand. The firm also points to Apple’s staggered iPhone launch schedule, expecting the upcoming iPhone Duo to offset the sales shortfall caused by the delayed regular iPhone 18 model, which is anticipated to launch early next year.
Adding to the outlook, China’s Securities Times reported that Apple has increased iPhone Duo orders by 30%, potentially bringing production for the remainder of 2026 close to 10 million units. For the December quarter, JP Morgan projects iPhone Duo sales of 8.5 million units. While the firm forecasts a roughly 2% year-over-year decline in iPhone revenue, it anticipates a 2% increase in Apple’s overall revenue.
JP Morgan continues to flag supply constraints and broader economic pressures that could impact consumer demand heading into the December quarter.
Source: 9to5Mac · Summarized by HeadlinesBriefing