Investors are increasingly viewing higher iPhone prices as a reason to invest in Apple’s stock. AAPL shares have rallied for five consecutive days, recovering from a dip following last week’s lackluster product launch, which featured a slimmer iPhone that didn’t spark much enthusiasm. The rebound is driven by optimism that pricier models, such as the top-tier Pro version retailing for up to $1,999, could bolster Apple’s revenue growth, even if upgrade demand remains flat.
Ryan Vlastelica for Bloomberg News:
Average selling prices [ASP] for iPhones, which account for more than half of Apple’s revenue, are expected to rise about 4% in fiscal 2026 compared with an expansion of 1.5% in 2025, according to Bloomberg Intelligence estimates. That comes after nearly a decade in which prices throughout the iPhone lineup were largely flat.
“Prices are being really increased for the first time in several years, so if we see a typical replacement cycle with higher prices, plus some progress on AI, that may not be an exciting setup for the stock, but it’s a decent one,” said John Belton, portfolio manager at Gabelli Funds, which has $33 billion in assets under management…
More ambitious changes, such as a foldable iPhone, are anticipated next year. However, some Wall Street pros see conditions for iPhone 17 sales to outperform expectations. Early demand is stronger than it was for last year’s predecessor models, according to an examination of lead times by Morgan Stanley analyst Erik Woodring. It’s an early indication that iPhone upgrade rates could be improving, Woodring wrote in a research note on Tuesday.
MacDailyNews Take: AAPL’s primary key remains iPhone ASP.
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