Apple bets on iPhone Air "Astonishing" effect, Morgan Stanley is optimistic about its performance exceeding expectations
JP Morgan analysts believe that the iPhone Air is expected to achieve a market response beyond expectations, despite its features being similar to the base model iPhone. Apple's stock price rose nearly 4% due to a favorable ruling in the Google antitrust case, reaching its highest closing price since March. Analysts estimate that the production of the iPhone Air will be between 10 million and 15 million units, and if priced around $800, it may benefit from subsidies in the Chinese market. Bank of America analysts, on the other hand, are cautious about the new model but still maintain a "buy" rating on Apple stock, with a target price of $250
According to the Zhitong Finance APP, after a favorable ruling in Google's (GOOGL.US) antitrust case on Tuesday, Apple's (AAPL.US) stock price gained momentum, closing nearly 4% higher on Wednesday, marking its highest closing price since early March. With the autumn launch event approaching, the tech giant hopes to achieve similar stock price boosts when it unveils its latest series of iPhones and Apple Watches.
JP Morgan analysts believe that the iPhone Air is expected to receive a better-than-expected market response.
In an investor report led by Samik Chatterjee, the JP Morgan analyst team stated: "Although the iPhone Air's features are more aligned with the base model iPhone rather than the Pro version, its lighter and thinner design may attract a broader consumer base than anticipated. In recent months, supply chain feedback has indicated that Apple plans to control the production of the iPhone Air at approximately 10 to 15 million units in the second half of this year, leading to a downward adjustment in market sales expectations for this model. However, if consumer response is better than expected, there is still room for surprises."
Pricing strategy is also worth investors' attention: if the new model is priced around $800, it would qualify for subsidy policies in the Chinese market, potentially providing additional growth opportunities for Apple.
However, Bank of America analyst Wamsi Mohan expressed cautious expectations for this new model.
In a report, Mohan noted: "We believe the main highlight of this launch event will be the introduction of the ultra-thin model iPhone 17 Air to replace the existing Plus model. While past design innovations have significantly boosted iPhone sales, investors are more rational about the benefits brought by ultra-thin models." Despite his cautious stance on the iPhone 17 Air, Mohan reiterated a "buy" rating on Apple stock, setting a target price of $250
