Loop trims Apple outlook on product mix and pricing changes

Published 21/08/2025, 14:24
© Reuters

Investing.com -- Loop Capital trimmed its outlook on Apple (NASDAQ:AAPL), lowering its price target to $226 from $230, citing product mix and pricing adjustments ahead of the iPhone 17 launch.

The broker reiterated its Hold rating on the stock.

The updated estimates reflect shifts in demand toward higher-end Pro and Pro Max models, alongside weaker expectations for lower-tier devices.

Loop estimates that iPhone shipments in the September quarter will rise by 3 million units, while average selling prices (ASPs) fall by $36, resulting in a $1 billion increase in revenue to $51 billion for the quarter.

For the December quarter, however, Loop expects a revenue decline. “Dec Q iPhone units increase by 1M while blended ASPs decrease by $39, and revenue decreases by $2B,” Loop Capital’s Ananda Baruah said in a note.

Full-year 2025 projections see iPhone shipments rising by 4 million units to 226 million, but average selling prices falling to $985 from a prior $1,006 estimate. That leaves total iPhone revenue essentially unchanged at $223 billion.

Overall, Loop’s new forecast calls for fiscal 2025 revenue of $430 billion, slightly below its previous $431 billion estimate, and EPS of $7.64 versus $7.66 prior.

Analyst checks also revealed Apple has cut its expectations for the iPhone 17 Air, which is now projected to account for about 20% of total unit sales, down from an earlier 30%.

The base model’s display was also upgraded to 6.3 inches, aligning it with the Pro version.

“AAPL upgraded its base model display from 6.1” to 6.3”, matching the Pro model, providing flexibility if demand for the 16e, upcoming 17e (March 2026), and 17 Air models fall short of expectations,” Baruah said.

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