Apple's stock edged up 1.1% in Thursday trading following the company's latest product event, where it unveiled the iPhone Duo, iPhone 18 Pro, and iPhone 18 Pro Max. Wall Street's reaction has been largely positive, though analysts diverge on the strength of the new iPhone cycle and the impact of rising component costs.
Citi reiterated a Buy rating with a $365 price target, calling the iPhone Duo "Apple's biggest new hardware category since the watch and AirPods." The firm noted that Apple has already raised prices on the iPhone 16 and iPhone 17 by at least $100 to offset higher memory costs, and that the iPhone 18 lineup's pricing is broadly in line with expectations.
Bank of America also maintained a Buy rating but trimmed its price target to $370 from $380. Analyst Wamsi Mohan highlighted that the event marked the first major product launch under CEO John Ternus, who emphasized Apple's core values and customer-focused development. Mohan observed that iPhone prices came in below BofA's estimates, which could support unit sales but may pressure gross margins as memory and other component costs rise.
Morgan Stanley's Erik Woodring kept an Overweight rating with a $360 target, framing the iPhone as an "intelligent personal hub" with the iPhone Duo and Siri AI at the center. He pointed to continued innovation, semiconductor and software differentiation, and pricing factors as potential drivers of above-trend growth into fiscal 2027. Woodring also noted that Apple's first 2nm A20 SoC could deliver a significant performance boost, and that the iPhone Duo could reshape the premium smartphone market.
On the more cautious side, GF Securities' Henry Huang maintained a Hold rating. He called the $100 price increase for the iPhone 18 Pro "better than feared" but flagged uncertainty around the iPhone 18 Pro cycle, including limited hardware upgrades and potential margin pressure. Huang acknowledged that the iPhone Duo could partly offset these concerns but described the iPhone 18 series as a modest product cycle.
J.P. Morgan's Samik Chatterjee said the event was largely in line with expectations, noting that investors may have anticipated larger price increases due to memory costs. He believes the pricing decisions could support iPhone volumes and expects Siri AI features, scheduled for beta release in mid-September, to contribute to revenue growth. Chatterjee also suggested that supply-chain feedback from early orders could serve as a catalyst for Apple shares.
The launch has also sparked broader market interest. Search interest for foldable phones reportedly surged 1,050% after the iPhone Duo's debut, and Samsung shares slid as Apple's $1,999 foldable entry threatens its lead. These dynamics underscore the competitive stakes in the premium smartphone segment.
As investors digest the new lineup, the key variables remain consumer demand, component costs, and the pace of AI-driven upgrades. With the iPhone Duo priced at $1,999, Apple is betting that its foldable entry will create a new growth avenue, even as some analysts question the near-term margin impact.
This article is for informational purposes only and does not constitute financial advice.
