Investment firm JP Morgan has previously reported that the iPhone 17 demand was high, but now it is raising its target price because of it, saying that Apple is looking more positive than it has in a year.
Back in June 2025, JP Morgan analysts trimmed their Apple stock price because of perceived weakness with the iPhone. Then in July, it didn't raise that price, but did predict that eventually Apple would be worth a much higher target.
According to a JP Morgan note to investors, seen by AppleInsider, that time is fast approaching. It actually predicted that it would be raising what it called its December 2026 price target, and this is what it has now done.
That December 26 price target has been raised from $280 to $290. The company cites some modest existing gains for Apple, but puts its rise down to what it sees as increased confidence in the iPhone product cycle.
In the short term, the company's analysts expect Apple's next earnings report to come in higher than the finance market's consensus. JP Morgan predicts $103 billion in revenue, compared to the consensus prediction of $102 billion.
The company does break that down further, but with the iPhone driving sales at $50.2 billion instead of the consensus $49.3 billion. Mac, iPad, and Services, are all similarly now expected to see positive but small increases over the consensus.
First fiscal quarter of 2026 predictions
Apple's Services segment is also a reason why JP Morgan is positive about the future. While Services tends to always rise, the company's analysts expect to see more than before — specifically because of how well the iPhone 17 range is selling.
While it's not clear what proportion of iPhone 17 sales are down to upgraders. But presumably at least some are to new users, so it does follow that demand for Services is likely to grow.
JP Morgan says that it expects low-teens growth in Services for the December quarter. It predicts revenue to be $29.8 billion, over the consensus of $29.4 billion.
That overall growth is described as being robust. The analysts believe it will help moderate the impact of tariffs on Apple's earnings.
Tariffs notwithstanding, JP Morgan predicts that high demand for the iPhone 17 will drive the December quarter revenues. Specifically, it forecasts $76.1 billion in revenue from the iPhone, over the consensus of $73.5 billion.
Looking further into 2026
As part of its rational for raising its December 26 price, JP Morgan says that it sees strong growth for Apple during 2026. That is partly based on a presumption that Apple Intelligence will launch significantly successful new features.
However, it's also predicated on an expectation that the high iPhone 17 demand will be followed by a strong upgrade cycle for the iPhone 18 range.
But that upgrade cycle prediction rests chiefly on the assumption that Apple will launch the iPhone Fold during 2026. Separately, one recent report claimed that issues with its hinge design will mean that the iPhone Fold slips to 2027.
