JP Morgan Raises Apple Price Target to $360 Despite iPhone 18 Pro Production Cut Reports

JP Morgan's Price Target Adjustment

JP Morgan has raised its price target for Apple (AAPL) stock from $340 to $360, while reiterating an Overweight rating. This decision follows recent reports concerning Apple's iPhone production.

The firm's analysis suggests that reported production adjustments are consistent with Apple's typical manufacturing cycles and do not necessarily indicate an unexpected decline in demand.

iPhone Production and Demand Concerns

Nikkei Asia reported that Apple instructed suppliers to reduce component production for the iPhone 18 Pro and iPhone 18 Pro Max due to "soft demand." This news initially caused Apple shares to drop by approximately 2.5%.

However, JP Morgan's investor note indicates that the staggered launch schedule, particularly the performance of the iPhone Duo, is expected to mitigate any sales shortfall from the later release of the regular iPhone 18.

iPhone Duo's Role in Sales Strategy

JP Morgan anticipates the iPhone Duo will help offset the impact of the staggered iPhone 18 release. A separate report from China's Securities Times claimed Apple increased iPhone Duo orders by 30%, potentially reaching close to 10 million units for the remainder of 2026.

For the December quarter, JP Morgan projects Apple to sell 8.5 million iPhone Duo units. The firm forecasts a roughly 2% decline in iPhone revenue year-over-year, but an overall 2% increase in Apple's total revenue.

Broader Economic Context

JP Morgan also noted ongoing supply constraints and broader economic pressures as factors that could influence consumer demand for Apple products. Despite these potential headwinds, the firm maintained its positive outlook on the stock.