Apple (NASDAQ:AAPL) will introduce its iPhone 15 and a new model of the Apple Watch on September 12. Ahead of the planned launch, several media reports suggest that the iPhone 15 will be pricier than its previous versions. Higher pricing and an increased mix of iPhone 15 sales will likely give a significant boost to Apple’s revenue and profitability.
In a note to investors dated August 31, Goldman Sachs analyst Mike Ng wrote that he expects the iPhone 15 to drive improved price/mix for overall iPhone sales. The analyst believes the iPhone 15 could lead to “like-for-like price increases on Pro/Pro Max (Ultra) as well as a mix shift toward higher priced models.”
While the Goldman Sachs analyst sees supply chain constraints and macroeconomic weakness as challenges, he reiterated a Buy rating on AAPL stock. The analyst expects iPhone sales to increase by 5% in Fiscal 2024. The analyst added that the durability of the iPhone’s installed base and lower churn will enable the company to offset macro headwinds, drive demand, and support earnings.
To conclude, Apple’s revenue and earnings should benefit from higher pricing and a substantial existing customer base. However, China’s limitations on the utilization of iPhones and other foreign devices in the offices of central government agencies could hurt demand in one of the company’s biggest markets.
What is the Apple Stock Forecast?
The weakness in iPhone, iPad, and Mac sales, along with economic uncertainty, keep analysts cautiously optimistic about Apple stock. With 22 Buys and eight Holds, Apple stock has a Moderate Buy consensus rating. These analysts’ average 12-month price target of $208.13 suggests 13.79% upside potential from current levels.
