According to TheFly, Rothschild & Co. Redburn analyst Timm Schulze-Melander upgraded Apple to ‘Buy’ from ‘Neutral’.
- Schulze-Melander expects Apple to launch the iPhone Ultra in September, giving it a new product category to tap while potentially lifting the average selling price of its broader iPhone lineup.
- The analyst estimates the device could cost $2,199, or about an 83% premium to the iPhone 17 Pro Max, meaning even relatively modest volumes could have a meaningful impact on Apple’s revenue mix.
- The firm expects the foldable iPhone to increase Apple’s average selling price for the iPhone lineup by 11% by June 2027.
Apple Inc. (AAPL) could have two major catalysts waiting in the wings: a premium foldable iPhone and a revamped artificial intelligence strategy.
According to TheFly, Rothschild & Co. Redburn analyst Timm Schulze-Melander upgraded Apple to ‘Buy’ from ‘Neutral’ and raised the price target to $400 from $260, implying an upside potential of about 31% from Friday’s closing price.
Apple shares were up nearly 0.4% in Monday’s pre-market trade.
Foldable iPhone: The Biggest Near-Term Bull Case For AAPL, Says Analyst
One of the reasons behind Schulze-Melander’s optimistic outlook for Apple is the expected launch of the foldable iPhone next month. The analyst expects the company to launch the iPhone Ultra in September, giving Apple a new product category to tap while potentially lifting the average selling price of its broader iPhone lineup.
According to an Investing.com report, Schulze-Melander expects the foldable iPhone to sell 14 million units in fiscal 2027, with only about four million of those sales coming at the expense of conventional iPhones.
The analyst estimates the device could cost $2,199, or about an 83% premium to the iPhone 17 Pro Max, meaning even relatively modest volumes could have a meaningful impact on Apple’s revenue mix.
The firm expects the foldable iPhone to increase Apple’s average selling price for the iPhone lineup by 11% by June 2027. It also forecasts iPhone revenue to come in up to 14% above consensus estimates across fiscal 2026 through fiscal 2030, while projecting roughly 12% annual iPhone sales growth over the period.
Apple is expected to launch the iPhone 18 series, the foldable iPhone, and other devices at its September event.
Analyst Says AAPL’s AI Strategy Could Be The Bigger Opportunity
The second part of Schulze-Melander’s outlook is more ambitious: Apple does not necessarily need to develop the world’s best AI model to become a major beneficiary of the AI boom. The analyst sees Apple leaning on open-source models while focusing on controlling the consumer-facing AI experience.
Ultimately, Schulze-Melander believes Apple could “assert itself as the gatekeeper of consumer AI,” delegating workloads to a “subservient fleet of open-source models” and monetizing AI interactions through Apple Pay and other payment platforms.
White House Does Not Want AAPL To Buy Chinese Memory Chips, Says Report
According to a report by The Wall Street Journal late Friday, the White House does not want Apple to buy Chinese memory chips amid a supply crunch, as the iPhone maker looks to ease constraints.
Commerce Secretary Howard Lutnick said during an interview that he had relayed this message to Apple, adding that there must be other solutions to the memory supply crunch beyond U.S. companies buying supplies from Chinese manufacturers.
What Retail Traders Think Of AAPL Stock
Retail sentiment on Stocktwits around Apple trended in the ‘bullish’ territory at the time of writing.
AAPL stock is up 13% year-to-date and 31% over the past 12 months. The S&P 500 ETF Trust (SPY) is up 20% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 26%.
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