According to Citi's most recent report, the target stock price for Apple has been cut from $330 to $315. The reason cited is that the skyrocketing memory chip prices are set to squeeze Apple's profit margins. It's projected that Apple's gross margin will come under substantial downward pressure in 2026. Specifically, the average selling prices of DRAM and NAND flash memory are expected to soar by 88% and 74% year - on - year, respectively.

However, Apple is likely to weather the storm better than most Android manufacturers. This is due to its premium market positioning and strong bargaining power within the supply chain. In the long run, two major developments are expected to act as new growth engines for Apple. First, the AI - driven upgrade of Siri is on the horizon. Second, the highly anticipated launch of the first foldable iPhone in the second half of 2026 is expected to bring a fresh wave of growth.

Looking at the nearer term, the demand for the iPhone 17 is anticipated to stay robust by the end of 2025. As a result, Apple's iPhone shipments in the December and March quarters are likely to surpass market expectations. For the whole of 2026, iPhone shipments are forecast to grow by 1.2%, outperforming the global market.

Data from third - party agencies shows that Apple has had a strong market performance in 2025. Interestingly, there's been a divergence in trends between the revenue growth of the App Store and Apple's overall service revenue growth.

Apple is also teaming up with Google to back the next generation of foundational models. A personalized Siri, equipped with advanced AI capabilities, is expected to make its debut in spring 2026.

As for the foldable iPhone, it's set to hit the market in the second half of 2026. Citi projects that shipments will reach around 8 million units in 2026 and could potentially jump to 20 million units in 2027. Apple is also expected to grab over 30% of the market share in the foldable smartphone segment.