JP Morgan has reduced its price target for Apple from $345 to $340. The investment firm cited ongoing supply chain constraints and rising component costs as key reasons for the change. Despite the adjustment, analysts remain optimistic about Apple’s long-term growth prospects.
The revised forecast follows Apple’s record-breaking June quarter. Although strong financial results impressed investors, concerns about product availability and manufacturing costs continue to weigh on market expectations.
Supply Challenges Continue
Apple has faced several challenges in recent months. RAM shortages, higher component prices, and supply constraints have affected the company’s production plans. According to JP Morgan, these issues are likely to continue through December, even as Apple works to reduce their impact.
Even so, demand for Apple’s latest products remains strong. JP Morgan believes the popularity of the iPhone 17 and MacBook Neo continues to support sales momentum. In addition, the expected launch of Siri AI could encourage more customers to upgrade during the final quarter of 2026.
Short-Term Pressure, Long-Term Confidence
While demand remains healthy, supply limitations could temporarily reduce revenue. JP Morgan expects product shortages to delay some sales into future quarters rather than eliminate them completely. As a result, the company believes Apple’s long-term earnings outlook remains intact.
Analysts also noted that rising memory prices may reduce Apple’s gross margin. However, Apple has several ways to soften the financial impact. The company can negotiate lower prices for non-memory components while continuing to grow its high-margin services business.
Services Could Offset Some Costs
JP Morgan expects Apple’s services division to provide additional support. Revenue from iCloud+ subscriptions linked to AI token allowances could help strengthen overall financial performance. This recurring income may offset some of the pressure created by higher hardware costs.
Apple’s Outlook Remains Positive
Although JP Morgan lowered its price target, the firm does not expect Apple’s recent challenges to derail its long-term growth. Strong consumer demand, upcoming AI features, and expanding services revenue continue to support a positive outlook.
For investors, the latest forecast suggests that current supply chain issues are temporary. While short-term performance may face pressure, Apple appears well positioned to benefit once component availability improves and demand continues to build.
