Citi hikes Apple price target as iPhone 18 launch approaches

Citi Research raised its price target on Apple Inc. shares, calling the upcoming iPhone 18 launch an important driver for the company to extend its market share gains.

The firm, which did not disclose the specific analyst or the new target, now sees greater upside in Apple as the next smartphone cycle approaches. The revision reflects confidence that the iPhone 18 will drive a significant upgrade wave among Apple's installed base of more than 2 billion active devices.

Apple has been steadily capturing share in the premium smartphone segment, a trend Citi expects to accelerate with the new device. The iPhone 18 launch, expected in the fall, comes as Apple also navigates a separate legal dispute with OpenAI over alleged trade secret theft, though analysts view the product cycle as the dominant near-term driver for the stock.

The price target revision positions Citi among the more bullish voices on Wall Street heading into Apple's fiscal third-quarter earnings, expected later this month. The report will provide the latest read on iPhone demand, services revenue growth, and management's outlook for the second half of the year. The S&P 500 has gained 10.7 percent year to date, while the tech-heavy Nasdaq Composite has risen 13.1 percent, according to MarketWatch data.

Apple faces competition from Samsung Electronics and Chinese handset makers in the premium segment, though the company has maintained pricing power and customer loyalty through its ecosystem of services and accessories. The iPhone 18 is expected to feature upgraded camera systems and new AI-powered capabilities, which could differentiate it from prior generations and encourage existing users to upgrade.

The broader earnings season kicks off this week with major banks including JPMorgan Chase and Goldman Sachs reporting, and Apple's results will offer a key read on consumer spending and smartphone demand heading into the second half of the year. Analysts expect the company to report revenue growth driven by its services segment and steady iPhone sales ahead of the new model launch.

For holders, the upgrade points to confidence in Apple's product cycle momentum heading into the iPhone 18 launch. The next event to watch is Apple's earnings release, expected in late July, which will offer updated guidance and iPhone sales data for the quarter.

This article is for informational purposes only and does not constitute investment advice.