Financial analysis firm JP Morgan has told investors to ignore reports of low iPhone 18 Pro demand and has raised its target price by $20 to $360. The firm had lowered its target to $340 in July 2026 on concerns about supply constraints. Now, with reports of Apple cutting orders over weak demand, JP Morgan is raising its target and urging investors to look beyond the short term.
In a note to investors seen by AppleInsider, the analysts entirely dismiss those reports. They say there is nothing beyond the typical production adjustments Apple makes every year. The firm is trimming its expectations for Apple's December quarter, but attributes this to the split of the 2026 iPhone launch. JP Morgan predicts a temporary shortfall as buyers of the regular iPhone wait for an early 2027 launch. Demand for the iPhone 18 Pro is slightly higher so far than for the iPhone 17 Pro, and that previous model is reportedly still selling well.
The analysts expect sales of the Pro models to rise because of the split launch, and they predict the shortfall will be more than offset when the iPhone Duo goes on sale toward the end of October. JP Morgan expects Apple's September quarter earnings to be only just above industry expectations, with supply constraints still a factor. By the December quarter, it predicts Apple will have sold around 8.5 million iPhone Duo units. Overall, iPhone revenues are expected to fall around 2% year over year, though higher prices should lift total December revenues about 2%.
JP Morgan remains optimistic about Apple's earnings but cautions about risks. These include the global economic situation and consumer demand, rivals in international markets benefiting from local pricing power, and overseas governments enacting tariffs that favor local firms. Within Apple's control, the analysts still list the change of CEO as a potential factor.
Source: AppleInsider · Summarized by HeadlinesBriefing