Despite delivering record-breaking financial results for its third quarter of 2026, Apple is facing fresh concerns from Wall Street over its ability to meet hardware demand. Following the massive Q3 2026 earnings report, JP Morgan adjusted its expectations for the technology giant. The investment bank officially lowered its price target for Apple stock from $345 down to $340.
It is citing ongoing supply constraints that are expected to impact short-term revenue through the end of the year.
Don’t miss the best of The Mac Observer
Set us as a preferred source and our Apple reporting ranks higher in your Google Search results and Discover feed — one tap, no account changes.
Supply chain bottlenecks delay potential hardware revenue
In a recent note to investors, JP Morgan highlighted that Apple is currently battling significant supply chain issues, alongside unexpected component price increases. While demand for upcoming products like the iPhone 17 and the new MacBook Neo remains incredibly high, the company simply cannot build the devices fast enough to capitalize on that interest immediately. The analysts expect these hardware shortages to persist through December, shifting potential sales into later quarters rather than capturing them right now.
However, JP Morgan’s overall outlook on the brand remains positive. The firm believes that these missed sales are merely delayed, not lost entirely to competitors. Furthermore, the firm noted that the upcoming launch of new Siri artificial intelligence features will help sustain consumer interest and drive hardware upgrades heading into the fourth quarter.
The investment bank also pointed to Apple’s services division as a strong bright spot to help offset the hardware struggles. JP Morgan expects services revenue to see a noticeable bump as users begin signing up for premium iCloud+ subscriptions to access the heavily anticipated AI tools.
While the short-term view includes some unavoidable bumps in the road, analysts believe Apple is well-positioned for long-term growth once it clears these supply hurdles.
Discussion