Shares of tech giant Apple (AAPL) are in the green today after Morgan Stanley analyst Erik Woodring shared his insights on the upcoming iPhone SE 4. Indeed, he is predicting a strong start for the device and forecasts 3 million iPhone SE 4 builds in the first quarter of 2025 and 15 million total shipments in Fiscal Year 2025. In addition, he noted that the device’s improved hardware specs, including a 6.1-inch AMOLED display and A18 Bionic chip, will likely justify a starting price of $499. As a result, he maintained his Buy rating on Apple with a $275 per share price target.
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Woodring’s analysis also highlights the positive impact of Apple Intelligence on U.S. iPhone demand. According to data from IDC, Apple’s iPhone 15 Pro, Pro Max, and iPhone 16 sold better in the U.S. (the only market that offers Apple Intelligence) than in other countries during the December quarter. Specifically, U.S. sales were down 2.7% from the previous year versus a 6.3% decline in other countries.
However, analyst Erik Woodring notes that this success was largely due to Americans buying discounted iPhone 15 Pro and Pro Max models, which were a year old, rather than the latest iPhone 16. In other words, Apple Intelligence, a feature available on these devices, may have helped boost sales, but mostly because people were buying older models at a discount.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 18 Buys, 11 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 26% rally in its share price over the past year, the average AAPL price target of $250.94 per share implies 7.3% upside potential.
