JP Morgan has lowered its price target for Apple to $340 from $345, citing ongoing supply chain constraints that will weigh on short‑term results while maintaining a bullish long‑term view. The downgrade follows Apple’s record‑breaking quarter, which failed to ease investor concerns about component shortages and pricing pressures.

Analysts note that Apple has faced a bumpy stretch due to RAM shortages, recent price increases, and broader supply constraints expected to persist through December. Despite these headwinds, demand for upcoming products like the iPhone 17 and MacBook Neo remains strong, and the imminent launch of Siri AI is anticipated to boost interest heading into Q4 2026. Investors anticipate that these challenges will continue through the holiday season even if Apple finds mitigation strategies.

JP Morgan warns that supply constraints will delay rather than prevent sales, pushing revenue into later quarters, and that higher component costs could compress gross margins. Apple can offset some impact by securing lower prices on non‑memory parts and leveraging growth in services, particularly iCloud+ subscriptions tied to AI token allotments. The note also highlights that services revenue could see a bump from AI‑driven iCloud+ offerings, further supporting the long‑term thesis. The firm believes the long‑term outlook stays positive, with a December 2027 target of $340 reflecting confidence that constraints are temporary.