iPhone 18 demand leads Morgan Stanley to raise AAPL target to $298
As the smartphone market continues to evolve, Apple remains at the forefront, creating a buzz with each new release. Recent insights from Morgan Stanley indicate a promising outlook not just for the current iPhone 17, but also for the anticipated iPhone 18. This speculation has led the financial institution to raise its target price for Apple Inc. (AAPL) to an impressive $298, reflecting confidence in consumer demand and future innovations.
Current performance of the iPhone 17 and expectations for the future
According to Morgan Stanley, the upgrade cycle for the iPhone 17 has shown only modest growth compared to initial predictions. However, analysts are optimistic about the upcoming iPhone 18, prompting the revised price target for AAPL. Back in March 2025, Morgan Stanley had cut its price target to $252 due to concerns over low upgrade rates among users.
Despite these past fears, current industry checks indicate that the anticipated demand for the iPhone 17 series may exceed expectations. Analysts predict that Apple will ramp up production, raising its order from the initial estimate of 84-86 million units to potentially more than 90 million units for the remainder of 2025.
Shifts in consumer demand and production insights
This increase in production is expected to focus primarily on the iPhone 17 Pro and iPhone 17 Pro Max models. Morgan Stanley's analysis suggests that this demand surge will help offset the lower-than-expected interest in the iPhone Air.
While the overall growth of the iPhone line has been modest, analysts describe this assessment as conservative, citing strong early demand trends. This strengthens the belief that the upcoming iPhone 18 will capitalize on the trend as many consumers are still using older iPhone models, potentially setting the stage for a robust upgrade cycle.
The anticipated iPhone 18 lineup
Looking ahead, Morgan Stanley has outlined expectations for a diverse range of iPhones to be launched in 2026. They speculate that Apple will introduce six new models, which are likely to include:
- iPhone 18e
- Base iPhone 18
- iPhone Air
- iPhone Fold
- iPhone 18 Pro
- iPhone 18 Pro Max
This extensive lineup indicates Apple's strategy to cater to a broad spectrum of consumers, from budget-conscious buyers to those seeking the latest technology in flagship models.
Market potential and future projections
Morgan Stanley's projections suggest a total sale of 243 million iPhones in 2026. However, under a more optimistic scenario—where both the iPhone Fold and innovative new features drive demand—sales could jump to around 270 million units. This optimistic projection supports a bullish price target of $376 for Apple shares.
Such projections are not merely speculative; they are grounded in the analysis of current market trends and consumer behavior. With the introduction of groundbreaking features and designs, like the flexible iPhone Fold, Apple could significantly enhance its market position.
Overall outlook for Apple Inc.
Recently, Morgan Stanley has demonstrated confidence in Apple's business trajectory, particularly regarding its ongoing partnership with Google. Analysts have noted that Apple is likely to maintain this strategic alliance, which plays a crucial role in its search engine market share. Furthermore, the company has shown resilience in navigating tariff issues that could impact its profitability.
As the technology landscape continues to evolve, Apple is set to remain a pivotal player. The anticipated iPhone 18 and its projected demand illustrate the company's ability to adapt and innovate, keeping its loyal customer base engaged while attracting new users.
For a closer look at the competitive landscape, you might find it interesting to check this video comparison of Apple’s previous and current devices, which offers valuable insights into how the company has adapted its technology over the years:
Conclusion
With strong indicators of demand and the introduction of innovative devices, it is clear that Apple's future is bright. The positive revisions by Morgan Stanley signal confidence not only in the current iPhone offerings but also in the substantial potential of upcoming releases, suggesting that Apple is poised for continued success in the competitive smartphone market.
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