Apple’s overweight rating was reaffirmed by Fortress National Bank, citing the significant increase in market share for non-Chinese smartphone brands in China. Apple’s current market capitalization stands at about 4 trillion US dollars, and the new target price implies roughly 10% upside from current levels.
Data from the China Academy of Information and Communications Technology show that in November, shipments of non-Chinese-brand smartphones reached around 6.93 million units, a year-on-year increase of 128%. Total mobile phone shipments in China in November rose 2% year-on-year to about 30.2 million units, though the growth rate slowed compared with the 10% and 9% recorded in September and October, respectively.
However, in other markets Apple is facing major regulatory and legal challenges. The Italian Competition Authority has imposed a fine of 98.6 million euros (115.5 million US dollars) on Apple, accusing it of abusing its dominant position in the online distribution of apps to iOS users, in violation of Article 102 of the Treaty on the Functioning of the European Union.
At the same time, Apple has announced adjustments to its iOS platform in Japan to comply with the country’s Mobile Software Competition Act, allowing alternative app distribution channels and payment processing options outside the App Store. In addition, after the suspension of Texas law SB2420—related to age-verification requirements for app marketplaces—Apple has also paused its implementation plans there.
Market Commentary:
On the financial side, Apple continues to attract attention from investment institutions and has received updated share-price targets. Jefferies has raised its target price for Apple to 283.36 US dollars, maintaining a Hold rating and citing the company’s resilience to rising memory costs. Morgan Stanley has lifted its target price to 315 US dollars, reflecting higher revenue expectations and maintaining an Overweight rating. These developments highlight Apple’s ongoing adjustments to a changing regulatory environment, as well as analysts’ constructive view on its earnings outlook.
