Morgan Stanley Sees $360 AAPL Target on Apple's AI-Driven Upgrade Cycle

Morgan Stanley analyst Erik Woodring is maintaining an Overweight rating and $360 price target for AAPL stock, citing Apple's latest hardware launch as evidence of a broader AI-driven upgrade cycle. The company's newest devices, including the iPhone Duo, represent a meaningful step higher in innovation, with the foldable iPhone being its most innovative device in years.

The iPhone Duo features a 7.6-inch inner display, A20 Pro chip, and a redesigned Siri powered by Apple Intelligence. This gives investors a more concrete answer to whether AI can convince hundreds of millions of iPhone owners to upgrade. Woodring estimates that 57% of iPhone users are still using devices older than the iPhone 15 Pro, creating a potentially large pool of customers who could be pulled into a replacement cycle.

Rosenblatt has also raised its AAPL target, but argues that Apple needs stronger innovation to justify its premium valuation. The new iPhone 18 Pro lineup includes the A20 Pro chip, upgraded on-device AI processing, and the new Siri AI experience, which gives Apple's AI strategy a more visible hardware foundation.