Apple, Inc. (AAPL) shares are trading slightly lower on Tuesday following the company’s highly anticipated launch event on Monday. The event unveiled the new iPhone 16 series, featuring enhanced AI capabilities, along with a fresh lineup of AirPods and Apple Watches.
The iPhone 16, designed with Apple Intelligence at its core, comes with a starting price of $799. The iPhone 16 Pro starts at $999, while the Pro Max model with 256GB storage is priced at $1,199.
Wedbush analyst Dan Ives is bullish on Apple’s prospects, predicting significant upside after the iPhone 16 launch. He projects iPhone 16 shipments to reach almost 90 million units, exceeding previous market estimates of 80 to 84 million. This represents a double-digit year-over-year increase.
“The new era of personalization and how consumers interact with their iPhones has now begun; this will cause a renaissance of iPhone growth for Apple over the next 12 to 18 months and drive shares higher with a $4 trillion market cap in 2025,” Ives wrote on X.
However, a recent ruling from the Court of Justice of the European Union cast a shadow on Apple’s celebrations. The court upheld the European Commission’s 2016 decision that Ireland should recover up to $14.4 billion in back taxes from Apple, deeming the tax breaks granted to Apple unlawful.
So, what does the future hold for AAPL stock? Wall Street analysts are divided. The average 12-month price target for Apple stands at $250.39, with the highest target reaching $300 and the lowest at $186. Of the analysts covering Apple, 40 have positive ratings, 7 are neutral, and 2 are negative.
While the iPhone 16 launch has generated buzz, the European tax ruling and varied analyst opinions suggest that AAPL’s stock trajectory remains uncertain. Whether Apple can capitalize on the new features and maintain its strong position in the market will be a key factor in determining the stock’s performance in the coming months.
