Target price raised before earnings report! Citigroup: Apple is expected to continue expanding its market share

Zhitong
2026.07.13 15:26

Citi released a research report, raising the target price for Apple from $315 to $365, maintaining a "Buy" rating. Citi believes that Apple, leveraging its brand advantage, AI ecosystem, and pricing strategy, is expected to continue expanding its market share and outperform the market amid a slowdown in the smartphone and PC markets. Analysts expect that the new iPhone and foldable products will boost sentiment, and the new tiered pricing model for Siri will contribute to long-term growth in the services business, with profit margins being limitedly affected by costs

According to the Zhitong Finance APP, before Apple (AAPL.US) announces its latest quarterly results on July 30, Citigroup released a research report raising Apple's target price from $315 to $365, maintaining a "buy" rating. Citigroup believes that despite the slowdown in global smartphone and personal computer market growth, Apple is expected to continue expanding its market share due to its brand advantage, product pricing power, and continuously improving AI ecosystem.

Citigroup analyst Asiya Merchant stated that Apple remains one of her favored large-cap tech stocks. She expects Apple to continue offsetting cost pressures by selectively raising product prices, and its high-end brand positioning and loyal user base will also help mitigate the impact of slowing demand.

Merchant pointed out that while Apple Intelligence is not expected to drive a large-scale replacement wave in the short term, the new generation of Siri's AI features will enhance user engagement and provide long-term growth momentum for its high-margin service business. Additionally, the upcoming new iPhone launch in September is expected to be an important catalyst for boosting market sentiment.

Citigroup anticipates that Apple will continue to outperform the overall smartphone and PC market in the future. Merchant stated that Apple maintains its competitive edge by expanding market share, strengthening product design competitiveness, and consolidating its mid-range market position through promotions and subsidy policies.

Regarding profit margins, Merchant believes that rising component costs will still exert some pressure, but Apple's pricing strategy is expected to largely offset the related impact, so the impact on profit margins is expected to be very limited.

She expects Apple to raise the prices of some products during the new generation iPhone release cycle in September, with a focus likely on high-end models that show stronger demand resilience. Furthermore, Apple is also expected to launch its first foldable product in the fourth quarter of this year, further enriching its product line.

In terms of AI strategy, Merchant anticipates that the new version of Siri may adopt a tiered pricing model in the future, further enhancing the revenue growth potential of Apple's service business by offering different levels of AI services

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