Apple's Foldable iPhone Duo Sparks Sharp Divide on Wall Street
Apple's $1,999 foldable iPhone Duo has sparked a sharp divide on Wall Street since its release. Analysts have drastically different price targets for the company, ranging from $263.66 to $400.
The sharp divergence in price targets is not necessarily about the phone itself but rather about Apple's pricing power. The Cupertino giant did not stop at launching the foldable iPhone; within hours of its biggest product event of the year, it redrew price tags across its existing lineup, with hikes of up to 41% in India and between 10% and 21% in the United States.
The new foldable was spared from these increases, while older models were not. This has led investors to wonder whether Apple can continue to charge a premium for its products despite the changing market landscape.
Bank of America trimmed its target to $370 from $380 and kept a buy rating, citing softer-than-expected iPhone pricing and rising memory and component costs eating into margins. However, it raised unit forecasts by 2 million for the current fiscal year and 5 million for the next.