Citi analysts reiterated a Buy rating on Apple (NASDAQ:AAPL) with a price target of $275.00, highlighting the company’s long-term growth prospects despite near-term macroeconomic concerns.
The analysts noted that Apple’s much-anticipated Siri upgrade, initially expected in the iOS 18.4 update in April, has been delayed, leading Citi to close its previous catalyst watch from January 31.
While economic headwinds and consumer spending uncertainties persist, Citi believes Apple’s expansive active installed base of devices and subscription services provides a strong foundation for sustained demand. The company’s integrated ecosystem of hardware, software, and services remains a key differentiator, allowing it to maintain user loyalty and drive long-term revenue growth.
Apple is also expected to benefit from gross margin expansion, fueled by a higher average selling price (ASP) mix in iPhone sales, deeper penetration in emerging markets, and cost reductions through in-house cellular chip development. Additionally, the growing share of high-margin services revenue should further enhance profitability.
Citi sees further upside potential from new product categories, including AR/VR, which are not fully factored into current estimates. With these drivers in place, the firm maintains its bullish outlook on Apple’s long-term growth trajectory.
