While price increases didn’t worry the investors at JP Morgan, ongoing supply chain constraints will have a short-term impact, and thus their new price target is $340.
It’s been a bumpy few months for Apple thanks to RAM shortages, price increases, and supply constraints. Investors expect that these problems will continue through December even if Apple finds ways to counteract their effects.
In a note seen by AppleInsider, JP Morgan shares that it believes high demand for products like the iPhone 17 and MacBook Neo has helped maintain momentum in the product cycle. Siri AI’s impending launch will also help drive demand going into Q4 2026.
As good as things might look for Apple on the demand side, everything else is a little more troubling. Supply constraints will impact overall revenue and increasing component prices will drive down gross margin.
Apple has levers it can continue to pull to combat these effects, but they only go so far. JP Morgan expects that even if the short term isn’t ideal, the long term will still look great for Apple.
First, the supply chain constraints will only delay sales, not prevent them entirely. Limited product availability will drive revenue into later quarters rather than lose it entirely.
Second, Apple can help maintain margins by seeking out lower prices on non-memory components. Also, services will see a bump thanks to revenue brought in from iCloud+ subscriptions tied to AI token allotments.
It’s not exactly a bleak outlook, just a realistic one as JP Morgan observes how news from the Q3 earnings will affect stock prices. The December 2027 target price is now set to $340 versus the previous $345 set earlier in July.
