Apple (NASDAQ:AAPL) shares are in the red today amid reports that rising memory costs could result in higher prices for the iPhone 18, while a Jefferies report indicated disappointing prospects for an all-glass iPhone.
However, Gene Munster, managing partner at Deepwater Asset Management, said in a recent program on CNBC that he still feels good about Apple and remains bullish on the stock
Munster believes a potential increase in iPhone prices could actually help boost Apple’s revenue growth, with limited impact on demand. At the core of his argument is his expectation of a strong upgrade cycle for Apple’s iPhone business, which he believes could drive higher sales over the next several quarters. He also sees a broader consumer hardware upgrade cycle driven by personalized AI beginning around 2027, which he believes could create another major growth opportunity for Apple. “There’s going to be a massive upgrade cycle around consumer hardware,” Munster said. “That’s probably going to start 27 mid to late 27 and probably go for a few years.
And that’s based on personalized AI. That’s going to do inference on device that’s going to benefit Apple, that’s going to benefit other hardware makers. And so when you put this together, I think shares are undervalued.