Citi boosts Apple price target to $350 amid strong iPhone upgrade cycle and AI optimism

In a bullish signal for investors, Citi analysts have reaffirmed their “buy” rating on Apple shares while significantly raising the firm’s price target to $350 from a previous $315. The adjustment, detailed in a research note released on Monday, implies a potential 26.3% upside from Apple’s closing price of $277.18 on December 9, 2025. This move underscores growing confidence in Apple’s hardware refresh cycle and long-awaited advancements in artificial intelligence features.
The optimism largely stems from an anticipated surge in iPhone sales, driven by consumers who have delayed upgrades for several years. Citi’s analysts predict this will materialize “as many customers are due for upgrades after years with the same devices.” This projection aligns with recent industry data bolstering the case for robust demand. A fresh report from IDC has revised its 2025 iPhone shipment forecast upward to 6.1%, a notable increase from the prior estimate of 3.9%. Similarly, Counterpoint Research has echoed these positive trends, highlighting sustained momentum in smartphone upgrades.
Apple’s own executives have signaled early success with newer models. During the company’s most recent quarterly earnings call, CEO Tim Cook expressed strong positivity about preliminary sales figures for the iPhone 17 lineup, describing the initial reception as “very encouraging” and pointing to “broad-based demand across regions.”
Adding to the tailwinds, Citi points to Apple’s strategic partnership with Google as a catalyst for AI innovation. The collaboration, which has been under scrutiny amid antitrust concerns, is now viewed as a pragmatic bridge to more advanced features. As reported by CNBC, Citi’s analysts noted: “We believe the partnership could enable Apple to deliver a more powerful Siri as promised while giving the company time to keep developing its own model.” This comes over a year after Apple unveiled ambitious AI enhancements at its Worldwide Developers Conference (WWDC) in 2024 — features like an upgraded Siri that have faced delays due to development hurdles and regulatory pressures. A deal with Google to use Gemini AI to underpin Apple Intelligence is expected to accelerate integration of cloud-based AI capabilities into iOS, potentially debuting in a major update next year.
Apple’s stock has shown resilience amid a turbulent 2025. Year-to-date, Apple is up 13.7%, outperforming broader tech indices.
For long-term investors, Citi’s revised target reflects a broader narrative of Apple regaining its footing in a post-pandemic market. With iPhone upgrades poised to drive revenue growth and AI finally transitioning from promise to product, the Cupertino Colossus could reward investors.
MacDailyNews Take: With the Christmas shopping season in full swing, all eyes will be on whether these forecasts translate into blockbuster Q1 2026 results.

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