Apple Could Get Price Target Revisit After AT&T's iPhone Endorsement

Apple (AAPL) shares remain in the headlines on Wednesday on multiple fronts, and we’re leading off with two more positive data points that not only support our recent price target increase, but also suggest more of the same may be needed.

The first comes from AT&T (T) , which, as part of its September quarter earnings report, shared that heavy promotions around the latest iPhone launch helped it attract more customers in a fiercely competitive market.

While AT&T didn’t break out specific iPhone figures, the company added 405,000 monthly bill-paying wireless subscribers, well ahead of the 334,100 Wall Street was looking for. As Verizon (VZ) and T-Mobile (TMUS) report, we’ll triangulate the net gains across those three large mobile carriers to get a better picture of overall demand and if we’re simply seeing market share shifts. Still, AT&T calling the iPhone out by name is another indication, following recent third-party data that iPhone demand is shaping up to be stronger than expected.

Next up, we are reading reports from Nikkei Asia that Apple is slashing production for the iPhone Air following what can only be called a weak reception. As it makes that move, the same reports indicate Apple is shifting production toward iPhone 17, Pro and Pro Max models. Compared to the more affordable Air, those three models carry more favorable average selling prices.

The tilt toward the iPhone 17 and premium models is also a positive for Qualcomm (QCOM) . The reason is, Apple used its proprietary modem chipset in the iPhone 17 Air, the first such product to do so, while Qualcomm retained its position in the iPhone 17 and premium models. With those data points in hand, we’re incrementally bullish on September quarter prospects for both companies as well as Qualcomm’s guidance for the current quarter.

On the subject of Apple’s foldable plans, more chatter is making the rounds. Part of it reaffirms the view that the iPhone Foldable, as it's being called, and its vertical fold will make its debut next year. The chatter also suggests Apple will follow with a foldable horizontal clamshell-like model in 2028. Both foldable models are expected to use organic light-emitting diode display panels, which means more good long-term things for our position in Universal Display (OLED) .

We are also seeing reports that the eventual foldable iPad is taking longer to develop, with a potential introduction now likely around 2029. However, the company’s adoption of organic light-emitting diode display panels remains bright, given expectations for the display technology to be used in the iPad Mini and MacBook Pro next year, the iPad Air in 2027 and the MacBook Air in 2028.

Finally, with the iPhone turning 20 in 2027, speculation is that Apple will introduce a bold redesign similar to what it did with the iPhone X. With just under two years until we are likely to see that come to fruition, we’ll focus on demand for the current product lineup and what that means for our Apple shares.

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At the time of publication, TheStreet Pro Portfolio was long AAPL, OLED and QCOM.