J.P. Morgan has raised its price target for Apple stock to $345 while keeping its Buy rating, showing confidence that the company’s recent product price increases will not hurt its long-term growth.
Apple increased prices across several products in late June because of higher memory costs, and although the announcement briefly pushed the stock lower, shares have recovered strongly and are now trading close to record highs. The investment firm believes Apple remains in a strong position despite concerns about higher hardware prices.
According to AppleInsider, J.P. Morgan believes Apple’s sales have stayed resilient over the years even when product prices increased, especially across the iPhone, Mac, and iPad lineup.
“Historical data for sales volumes covering iPhone, Mac, and iPad show a ‘limited relationship’ to pricing across multiple years. Essentially, consumers are going to buy Apple products anyway, and pricing doesn’t seem to matter too much,” J.P. Morgan said in its note to investors.
Apple’s Premium Products Continue to Support Growth
J.P. Morgan expects Mac sales to remain strong because buyers have multiple price options, while growing interest in AI features continues to encourage upgrades. The firm also said customers who buy premium iPhone models are generally less affected by higher prices, which helps reduce the impact of future pricing changes.
Although budget iPhone and iPad models are more sensitive to price increases, the firm described those effects as only modest revenue headwinds when combined with sales of higher-end devices.
Apple has not increased iPhone prices yet, but many industry watchers expect changes when the next generation lineup arrives in September. Meanwhile, investors will get an early look at how the recent pricing strategy affects the business when Apple reports its third quarter earnings on July 30.
After dropping following the price hike announcement in late June, Apple shares have recovered nearly 15%, reinforcing J.P. Morgan’s view that the company remains well positioned for long-term growth.
