Morgan Stanley Names Apple as 'Top Pick' Stock
Apple Intelligence Seen as Catalyst for Device Upgrades
Apple's stock price reached an all-time high on the 15th (local time), closing in on a market capitalization of $4 trillion. This surge was driven by Wall Street's upward revision of target prices and record sales in India.
On the New York Stock Exchange that day, Apple's stock closed at $234.40, up 1.67% from the previous session, setting a new record. During the session, it surged nearly 3% to reach $237.23. The stock has risen about 26% since the beginning of the year. Apple's market capitalization also increased to $3.594 trillion (approximately 5,000 trillion KRW), moving one step closer to the historic $4 trillion mark. The gap with Microsoft (MS), the second-largest by market cap, widened further.
The stock price increase was attributed to optimistic forecasts, including Wall Street's upward revision of target prices. Morgan Stanley designated Apple as its 'top pick' and raised the target price to $273. Analyst Eric Woodring of Morgan Stanley predicted, "Apple's artificial intelligence (AI) platform, 'Apple Intelligence,' will be a clear catalyst that triggers a massive device upgrade movement among users."
He explained, "Apple Intelligence operation is limited to devices using the 'A17 Pro' and 'M series' chips," adding, "Only 8% of iPhone and iPad users currently have access to this feature." It is estimated that more than 1.2 billion iPhone, iPad, and Mac products will require upgrades to use the Apple Intelligence feature. Additionally, Apple is expected to ship about 500 million iPhones over the next two years, surpassing the previous record set in 2021-2022.
Apple's sales growth in the Indian market also bolsters this optimistic outlook. According to Bloomberg, as of the end of March this year, Apple's sales in India reached an all-time high of $8 billion annually, a 33% increase from $6 billion in the same period last year. Sources reported that iPhone sales accounted for half of the revenue.
Apple has been focusing on the Southeast Asian market by opening Apple Stores in Mumbai and New Delhi last year. This is part of efforts to reduce dependence on China amid US-China tensions and diversify production and sales locations. Bloomberg emphasized, "Apple's India-based assembly partners produced $14 billion worth of iPhones in the last fiscal year," adding, "Apple now manufactures 14% of its major devices in India."
Meanwhile, Apple released a beta version of the new iPhone operating system, iOS 18, on the same day. Key AI features such as Apple Intelligence were not included in this test version. However, the iPhone's native call recording feature was introduced for the first time, with AI generating transcripts. Additionally, on the latest devices, users can send text messages via satellite even in areas without Wi-Fi or cellular service.
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