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Apple price target raised to $400 on foldables and Apple Intelligence bet
The upgrade from Rothschild Redburn cites a services business with about 75% gross margins and argues iPhone sales could rise around a 12% five-year CAGR.
Apple shares have a higher upside under a new bullish view from Rothschild Redburn, which upgraded the stock from Neutral to Buy and lifted its price target to $400 from $260. The firm pointed to Apple’s planned move into premium foldables and a strategic reset to its Apple Intelligence platform as key drivers for its outlook.
Rothschild Redburn’s near-term iPhone assumption calls for iPhone sales to grow at about a 12% five-year annual compound rate, with growth roughly 3% to 14% above consensus between fiscal 2026 and 2030. It links that expectation in part to the potential launch of iPhone Ultra, which could create a new product category and raise average selling prices across the iPhone lineup.
The analyst firm also emphasized the durability of Apple’s installed base and its services economics. It cited 2.55 billion devices as the foundation for retention and said Apple’s Services business is growing about three times faster than Products.
Rothschild Redburn added that Services is central to valuation partly because it earns roughly 75% gross margins, more than double the margin on product sales. It also raised the risk that closed-source AI models from OpenAI, Anthropic, and similar providers could shift where consumers start and finish digital activity, potentially weakening Apple’s position as a gateway, while suggesting open-source AI models could help Apple sustain Apple Intelligence independently.