Apple (AAPL.US) Bets on iPhone Air's "Wow" Effect, JPMorgan Optimistic About Its Outperformance

According to Jinse Finance, after Google (GOOGL.US) received a favorable ruling in its antitrust case on Tuesday, Apple (AAPL.US) saw a boost in its stock price, closing up nearly 4% on Wednesday and reaching its highest closing price since early March. With the upcoming fall launch event approaching, the tech giant hopes to achieve a similar stock price boost when it unveils its latest series of iPhones and Apple Watches.

JPMorgan analysts believe that the iPhone Air is likely to receive a market response that exceeds expectations.

The JPMorgan analyst team led by Samik Chatterjee stated in an investor report: "Although the iPhone Air’s features are closer to the base model iPhone rather than the Pro version, its lighter and thinner design may attract a broader consumer group than expected. In recent months, due to supply chain feedback indicating that Apple plans to keep iPhone Air production at around 10 to 15 million units in the second half of this year, market expectations for the model’s sales have been lowered. However, if consumer response is better, there is still room for positive surprises."

The pricing strategy is also worth investors’ attention: if the new model is priced around $800, it will qualify for subsidy policies in the Chinese market, which could provide Apple with additional growth opportunities.

However, Bank of America analyst Wamsi Mohan expressed a cautious outlook on this new model.

In a report, Mohan noted: "We believe the main highlight of this launch event will be the introduction of the ultra-thin iPhone 17 Air to replace the current Plus model. While previous design innovations have significantly boosted iPhone sales, investors’ expectations for the benefits brought by the ultra-thin model are more rational." Despite his cautious stance on the iPhone 17 Air, Mohan reiterated a "Buy" rating on Apple stock, with a target price of $250.