On Monday, Citi raised its price target on Apple to $365 from $315 while maintaining its Buy rating. The move reflects stronger margin expectations and rolled-forward financial estimates amid what the bank sees as Apple’s continued resilience in a tough environment for devices.
Apple shares were trading at new all-time highs in Monday morning trading, as investors digested the positive commentary ahead of the company’s upcoming earnings report. Citi remains constructive on the stock, highlighting Apple’s ability to gain market share even as broader smartphone and PC markets face headwinds.
Outperforming a Declining Market
Citi notes that smartphone and PC markets are likely to decline by mid-to-high teens percent. Despite this, Apple is positioned to outperform. According to the note:“continues to outperform the broader smartphone market through share gains, design-driven demand, and strong positioning in the mid-range price segment via promotions and subsidies.”
The firm also stated that Apple “should continue gaining market share despite a slowing devices market.”
Pricing Power and Margin Protection
A key driver behind the higher price target is Apple’s demonstrated ability to implement selective price increases. Citi observed that Apple raised prices on several products mid-quarter amid rising component costs and is evaluating additional memory suppliers to diversify its supply chain.
While iPhone prices remain unchanged for now, Citi expects price increases in the upcoming September launch cycle:“with more focus likely on the higher end models where demand is more resilient.”
The bank also flagged an expected foldable iPhone launch in the fourth calendar quarter. These factors support higher margin expectations following recent price increases.
AI Outlook: Measured Near-Term, Optimistic Longer-Term
On Apple Intelligence, Citi takes a pragmatic view. The note states that Apple Intelligence is:“unlikely to drive a significant upgrade cycle in the near term.”
However, the bank sees meaningful longer-term potential from enhanced Siri AI capabilities, which should increase user engagement and support growth in high-margin services revenue.
September Launch as Key Catalyst
Citi identifies the September iPhone launch as:“an important catalyst that could further strengthen investor sentiment.”
This event is viewed as a potential positive for both hardware momentum and overall investor confidence.
Services Growth: iCloud and Advertising in Focus
On the services side, Citi notes that Sensor Tower data showed App Store revenue in the June quarter grew just 3% year-over-year — tracking below company guidance. That said, the bank views iCloud and advertising as stronger drivers for future revenue growth.
Citi’s raised price target to $365 reflects a combination of:
• Continued market share gains in a challenging devices environment
• Ability to protect and expand margins through selective pricing
• Rolled-forward estimates and stronger margin expectations
MacDailyNews Take: Citi’s note underscores Apple’s structural advantages — brand strength, ecosystem lock-in, and pricing power — even as near-term AI-driven upgrade cycles remain limited.
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