Apple has once again demonstrated its ability to maintain its position as a leading technology company. Following a successful launch of the iPhone 17 and continued strong growth in its services business, the research firm Wedbush has raised its price target for Apple stock from $310 to $320. This decision is based on better-than-expected quarterly results, stable margins, and optimistic forecasts for the coming months.
Wedbush analyst Daniel Ives sees Apple on a clear growth trajectory. The iPhone 17 cycle is performing better than predicted, particularly in the US and China. Despite some challenges, such as supply bottlenecks and intense competition in the Chinese market, the company remains stable. The combination of strong demand for new hardware, rising service revenues, and a resilient supply chain continues to make Apple attractive to investors.
iPhone 17 drives growth
According to Wedbush, the launch of the iPhone 17 series significantly exceeded expectations. In both the US and China, the model is selling better than the previous iPhone 16 generation – even though the devices were only available for one week last quarter. Apple reported revenue of $102.47 billion in the September quarter, slightly above forecasts, and earnings per share of $1.85, 10 cents higher than expected.
With iPhone sales of $49 billion, the company fell slightly short of analysts' estimates, but Wedbush expects these delayed sales to have an impact in the December quarter. Government subsidies, particularly in China, are expected to boost demand for the entire iPhone product line. After a 3.5 percent year-over-year decline, the research firm anticipates a return to growth in the current quarter.
China remains a key factor
China remains Apple's biggest unknown. Despite declining sales last quarter, Wedbush expects a significant recovery, particularly for the base model of the iPhone 17. However, the analysts emphasize that Apple's long-term strength in this region will depend on its ability to maintain brand loyalty amid renewed competition from Huawei.
Stable margins despite tariffs and production relocations
Apple managed to maintain its gross margin at 47.2 percent – a figure that exceeded expectations. This is remarkable, given that the company had to pay approximately $1.1 billion in tariffs in the last quarter alone. The shift of production from China to India is playing an increasingly important role in this. A growing number of iPhones sold in the US are now manufactured in India.
Wedbush describes this transformation as a "complex Rubik's Cube of the supply chain" that has evolved into a strategic advantage. The broader production base gives Apple greater flexibility and reduces its reliance on Chinese facilities. This strategy is intended to help mitigate potential future tariff changes and ensure supply even during periods of high demand.
Services as a growth engine
Apple's services business is growing even more strongly than its hardware. The services division grew by 15 percent year-over-year to $28.75 billion, exceeding analysts' expectations. This segment encompasses products such as the App Store, iCloud, and Apple Music – all areas that offer high margins and recurring revenue.
Wedbush describes the services as the "foundation for growth" of the company. They compensate for fluctuations in device cycles and create a stable revenue base. The service business thus plays a central role in Apple's long-term strategy.
A cautious approach to artificial intelligence
Apple remains cautious but strategically focused in the field of artificial intelligence. Wedbush emphasizes that the company's large installed base of over 2.4 billion iOS devices offers a significant advantage. This platform can be used to strategically introduce AI features and expand partnerships – such as with Google Gemini. The aim is to accelerate the integration of AI into the Apple ecosystem without negatively impacting the user experience.
Wedbush keeps Apple on his list of "Best Ideas," emphasizing the balance between hardware sales, service growth, and manufacturing stability. This combination is intended to put the company in a leading position in AI and consumer technology in the long term.
Apple remains on a growth trajectory despite global challenges
With a new price target of $320, Wedbush sees upside potential of approximately 18 percent for Apple stock compared to the closing price of $271.40. The analysts view the December quarter as a crucial test – not only for the iPhone 17 cycle, but for the entire Apple ecosystem.
Apple is currently demonstrating exceptional resilience. Despite tariffs, geopolitical tensions, and production shifts, the company remains profitable and highly innovative. The interplay of a strong iPhone business, a growing services division, and strategic flexibility makes Apple one of the most stable technology companies worldwide – and one of the most exciting stocks for the coming years. The best products for you: Our Amazon storefront offers a wide selection of accessories, including those for HomeKit. (Photo by Unsplash / ubeyonroad)
Disclaimer: No recommendation for investments
This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.
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