Apple iPhone Cycle Sets Up for Strongest Upgrade in Years
Apple's upcoming iPhone cycle is shaping up to be one of its strongest in years. A recent survey by Evercore ISI, which polled about 4,000 consumers in the US, suggests that demand for iPhones will be higher than expected and that prices will also be higher, with average selling prices projected at $1,374, a 28% increase over historical levels.
The survey found that 61% of respondents plan to buy an iPhone this year, while 67% said their current iPhone needs an upgrade. This reinforces expectations for a strong cycle and has led analysts such as Evercore's Amit Daryanani to raise their price targets for Apple stock. Daryanani now forecasts that Apple will beat Street estimates for fiscal 2027 revenue and has raised his price target to $380.
Other analysts, including Bank of America's Wamsi Mohan, agree that the upcoming cycle is likely to be strong. Mohan notes that US carrier promotions are lifting trade-in credits on the iPhone 18 Pro Max to as much as $1,200 and spreading payments over 36-month plans. This, he argues, can offset Apple's higher pricing and keep the upgrade cycle affordable.
Despite limited upside implied by consensus targets, top-ranked analysts like Daryanani and Mohan see room for further gains if the upcoming iPhone cycle and wearables demand translate into revenue growth above current expectations of 7%.