This article first appeared on GuruFocus.
Apple (AAPL, Financials) rolled out the iPhone 17 lineup this week, but the spotlight quickly shifted to one model: the iPhone Air. Analysts say the slimmer, lighter phone may be Apple’s bridge to its first foldable iPhone, expected as soon as next year.
Citi called the iPhone Air a groundwork device, pointing to its durability and design as signs Apple is gearing up for bigger changes. The firm kept a Buy rating and $245 target on the stock.
Goldman Sachs also stuck with its bullish stance, noting that Apple managed to squeeze in a 27-hour battery, dual 48-megapixel cameras, and a new A19 Pro chip despite the thinner build. The bank also highlighted Apple’s first in-house Wi-Fi chip, which could help the company cut reliance on suppliers.
Wedbush analysts said the bigger story is the upgrade cycle. With 315 million iPhone users holding onto devices more than four years old, the firm sees Apple pushing toward what it calls a potential super cycle over the next 12 to 18 months. It maintained an Outperform rating and $270 price target.
Investors weren’t immediately impressed. Apple shares fell about 3% after the event, a drop that has often followed new iPhone launches before rebounding as sales data rolls in.
The bigger question is whether the iPhone Air creates momentum ahead of the first foldable iPhone, which could mark Apple’s next major shift in hardware design.