Can AAPL Stock Return To Record High? JPMorgan Says Price Hikes Won’t Hurt Demand

Sales volumes for iPhone, Mac and iPad have a limited relationship with pricing, JPMorgan said, citing past trends.

• Macs appear the most insulated, supported by a broader range of price points and AI-driven demand, according to JPMorgan.
• Apple raised the prices of MacBooks, iPads, HomePods, and Apple TV devices globally, citing high memory chip prices.
• AAPL stock has risen over the past week, hitting an all-time high on Monday.

Apple Inc. shares rose 0.3% in overnight trading ahead of Wednesday, extending the strong gains over the past week.

On Tuesday, JPMorgan raised its price target on Apple to $345 from $325 and reiterated its ‘Buy’ rating, with the new target implying about 11% upside from the stock’s last closing price.

The brokerage said Apple’s recent price increases across MacBooks, iPads, HomePods and Apple TV devices globally – and potential iPhone price hikes in the near future – are unlikely to materially dent demand. 

Historical sales data for the iPhone, Mac and iPad suggest a “limited relationship” between pricing and unit volumes over multiple years, JPMorgan said. Macs appear the most insulated, supported by a broader range of price points and AI-driven demand, it added.

While demand for lower-end iPhones and iPads could prove more sensitive to higher prices, JPMorgan expects the overall impact on revenue to remain modest, supported by the resilience of premium models.

Late last month, Apple became the largest consumer electronics company to raise prices in response to soaring memory chip costs, fueling concerns that more electronic makers could follow suit.

AAPL Stock Move, Retail View

Investors appear to have reacted positively to the development, with Apple’s shares rising about 13% over the past seven sessions. They hit their peak on Monday and dropped the next day marginally.

However, the retail sentiment for AAPL on Stocktwits has dipped as shares climbed and was ‘bearish’ on early Wednesday. “Very happy to see the Mag 7 names starting to turn green one by one,” a trader wrote. 

Apple Seeks To Diversify Memory Procurement

In a new report, the Financial Times cited people familiar with the matter as saying that Apple had begun testing DRAM chips from Chinese memory company ChangXin Memory Technologies for devices sold in China. Apple is leading a lobbying effort among U.S. tech companies to get broader use of CXMT’s products approved.

Apple is scheduled to report its third-quarter results on July 30.

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