Apple's 'Better Than Feared' Guidance Calms iPhone, AI, China Concerns: 7 Analyst Reactions

Apple Inc AAPL analysts see China, iPhone and Services as the key highlights from the company’s first-quarter financial results.

The Apple Analysts:

Raymond James analyst Srini Pajjuri reiterated an Outperform rating on Apple with a $250 price target.
Bank of America analyst Wasmi Mohan reiterated a Buy rating and raised the price target from $253 to $265.
Goldman Sachs analyst Michale Ng maintained a Buy rating and raised the price target from $280 to $294.
Rosenblatt analyst Barton Crockett maintained a Buy rating and raised the price target from $262 to $263.
Oppenheimer analyst Martin Yang reiterated a Perform rating with no price target.
Piper Sandler analyst Matt Farrell reiterated a Neutral rating with a $225 price target.
Needham analyst Laura Martin maintained a Buy rating with a $260 price target.

Raymond James on AAPL: First-quarter results were better than expected and Apple's outlook was "decent," Pajjuri said in a new investor note.

"We are encouraged by stronger upgrade trends in regions where Apple Intelligence is available, and remain optimistic [about] further momentum," Pajjuri said.

The analyst said the tech giant is "uniquely positioned" for one-device AI features with a strong ecosystem in place.

"On-device AI has lower capex needs and offers faster monetization potential through consumer hardware upgrades, which we think makes AAPL stock particularly attractive."

Bank of America on AAPL: Strong Services growth and higher gross margins could bring upside for Apple stock, Mohan said in a new note.

"We view GM as sustainable and expect more iPhone unit upside once Apple Intelligence further improves functionality," Mohan said.

The analyst said Apple's product portfolio is "resilient to macro demand fluctuations" and guidance was "better than feared."

Revenue in China was down 11% year-over-year. The analyst said lean channel inventory and sales momentum in the region at the end of the quarter could prove to be a tailwind to iPhone sales in the March quarter.

Goldman Sachs on AAPL: iPad and Mac showed strength in the quarter to offset iPhone and Wearables, Ng said in a new note.

The analyst said second-quarter guidance was "better-than-feared" and estimates could include the benefit of the iPhone SE4, which has not been announced.

"The strong F2Q25E outlook and commentary on Apple Intelligence's impact on iPhone demand to-date helps strengthen the favorable investment thesis around an iPhone upgrade cycle," Ng said.

The analyst said iPhone 16 sales are outpacing the iPhone 15 and upgrade rates are improving.

Apple's Services segment had record gross margins and revenue. The analyst sees this segment continuing to benefit from Apple's growing installed base and increased customer engagement.

Rosenblatt on AAPL: Investors’ fears about AI, and iPhone were "flipped to the mat" by the company, Crockett said in a new note.

"Fears had built that data points of weak global and China iPhone sales meant that consumers weren't interested in Apple Intelligence, less interested in Apple's iPhones, and that the bottom had fallen out in China," Crockett said.

The analyst said third-party data can be noisy and unreliable.

Crockett predicts Apple's March quarter could see China sales benefitting from inventory replenishment and a government stimulus.

Oppenheimer on AAPL: Services record revenue is a tailwind for margins, Yang said in a new note.

"Overall, Apple delivered slightly better than expected results, but iPhone supercycle based on Apple Intelligence rollout, seems harder to achieve any time soon," Yang said.

The analyst highlighted Apple CEO Tim Cook's comments that regions with Apple Intelligence outperformed regions without.

"We believe Apple will show stronger resistance to competition with its expanding hardware and software ecosystem."

Yang said Apple's elevated stock valuation, a lack of "compelling consumer gen AI applications and increased competition in China” could keep the company from beating analyst expectations for revenue and earnings.

"Longer term, we see compelling value in the Apple ecosystem and its ability to monetize its user base."

Piper Sandler on AAPL: Apple's quarterly revenue was in-line with estimates while iPhone revenue was worse than expected, Farrell said in a new note.

"Both iPhone revenue and broader China remain challenged in our view, with upside in the calendar fourth quarter driven by iPhone and Mac," Farrell said.

Needham on AAPL: Martin said highlights from Apple's quarter were record devices, Services record revenue growth, Mac and iPad revenue growth, iPhone 16 sales compared to iPhone 15 and gross margins.

The analyst said negatives from the quarter were iPhone revenue, China revenue, weak second-quarter guidance and wearables.

Martin said Apple provided a non-answer to a question about DeepSeek.

"AAPL ‘making its own weather' can make it appear totally out of touch with the real world sometimes, and their DeepSeek ‘non-answer' is a great example of this," Martin said.

Martin said Apple's installed base is its "most valuable asset."

"We argue that the best way to think about AAPL's valuation, pricing power, competitive advantage period and barriers to entry is through the lens of AAPL's installed base."

AAPL Price Action: Apple stock is up 0.8% to $239.65 on Friday versus a 52-week trading range of $164.08 to $260.09. Apple stock is up 30% over the last year.

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