Analysts revamp Apple stock price target on iPhone 17 launch

Core Insights - Apple is facing challenges in enhancing its artificial intelligence capabilities and has been in discussions with Google regarding the use of its Gemini AI to improve Siri [1][2] - The company reported a significant increase in iPhone revenue, attributed to the popularity of the iPhone 16 family, with Q3 iPhone revenue reaching $44.6 billion, a 13% increase year-over-year [3][4] - Apple launched new products, including the iPhone 17 line, which features increased storage at the same price point as previous models, although the iPhone 17 Pro will see a price increase due to this change [5][6] Financial Performance - Apple reported total revenue of $94 billion for Q3, marking a 10% year-over-year increase, with a gross margin of $43.7 billion and net income of $23.4 billion, reflecting increases of 10% and 9% respectively [7] - Earnings per share (EPS) for Q3 was $1.57, up from $1.40 in Q3 2024, indicating a growth of 12% [4][7] Market Outlook - Analysts from Bank of America have raised their target price for Apple shares to $270, citing expectations of a strong iPhone upgrade cycle in fiscal years 2025 and 2026, along with anticipated growth in services revenue and higher margins from internally developed silicon [9][11] - The potential for new products and services, including AR/VR, and a stronger-than-expected iPhone cycle are seen as positive factors for Apple's future performance [13]