Goldman Sachs is looking past the iPhone 16 to the iPhone 17 and beyond
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Analysts at Goldman Sachs wrote that while they expect iPhone shipments to decline by about 4% relative to the year-ago quarter, higher iPhone prices should make up for the shortfall, resulting in 1% year-over-year revenue growth for Apple’s flagship product.
The bank is already focused on Apple’s upcoming iPhones, which they expect to unlock growth as new AI features are rolled out.
“We’re encouraged by the potential for accelerating iPhone growth in F2026 driven by new product innovation for iPhone 17/18 and the continued rollout of Apple Intelligence to new markets with a more robust feature set,” Goldman Sachs said in a recent note.
A bright spot in the quarter should be Apple’s services business, with app store spending growth to reach an estimated 15% in the quarter with “ample runway for adoption of Apple’s services.”
“Concerns around Apple Intelligence’s limited impact on iPhone demand and China competition will likely be replaced by a focus on the new slate of Apple Intelligence features revealed at WWDC 2025, the launch of new Mac, iPad, and iPhone SE products in Spring 2025, and potential for new product features for the iPhone 17/18,” Goldman Sachs said.
Goldman Sachs rates Apple at “Buy” with a $280 price target.
