Morgan Stanley Boosts Apple Revenue Estimates Despite Lower iPhone Prices

Morgan Stanley upgraded its revenue estimates for Apple due to strong demand for iPhones and Macs. The financial services firm predicts that iPhone unit growth will be positive for four consecutive years, with earnings per share (EPS) compounding at around 13% between FY26-FY28.

However, the company's EPS estimate for fiscal year 2027 has been lowered to $9.90 from $10 due to lower-than-expected iPhone average selling prices and higher memory costs.

Morgan Stanley analyst Erik Woodring said that while new iPhone model pricing was less than expected, it is largely offset by better iPhone unit expectations, continued Mac upside, and modest Services upside.