Apple Inc. shares climbed in trading on Monday, supported by a wave of analyst optimism that the company's upcoming iPhone lineup could command higher prices.
The market move comes as Wall Street firms raise price targets for the tech giant, viewing potential price increases as a viable strategy to maintain margins despite ongoing supply chain constraints.
This positive sentiment for Apple stands in stark contrast to the broader technology sector, which has been weighed down by a broad-based sell-off in chip stocks.
The bullish case for Apple hinges on the company's ability to pass costs onto consumers.
With memory chip shortages continuing to pressure production costs for Macs and iPads — a dynamic that previously drove shares lower in late June — analysts now believe Apple can leverage its brand strength to implement similar price hikes on its flagship iPhone.
This pricing power is seen as a key differentiator in a market where many peers are struggling with margin compression.