In the ever-evolving world of consumer technology, where investor sentiment can swing on the promise of future innovations, Morgan Stanley has made a bold call on Apple Inc.’s stock. The investment bank recently raised its price target for Apple shares to $298 from $240, maintaining an overweight rating, driven by what analysts see as surging demand not just for the upcoming iPhone 17, but extending into the iPhone 18 cycle. This optimism stems from early indicators of robust consumer interest, including extended lead times for the iPhone 17 Pro models and whispers of groundbreaking features like foldable designs that could redefine Apple’s product lineup.

Analysts at Morgan Stanley point to supply-chain checks suggesting Apple may increase iPhone production builds by as much as 3% for fiscal 2026, with average selling prices potentially rising 1% due to premium features. This forecast implies shipments of around 243 million units in that period, a figure that could propel Apple’s revenue growth into 2027. The bank’s revised estimates also bump up earnings per share projections by 2% for 2026 and 6% for 2027, painting a picture of sustained momentum amid an aging installed base eager for upgrades.

Shifting Focus to Long-Term Catalysts: While the iPhone 17 is set to launch with enhanced AI capabilities under Apple Intelligence, Morgan Stanley’s hike underscores a belief that the real game-changer lies further ahead. Investors are advised to look beyond immediate releases, as foldable iPhones and advanced AI integrations could accelerate upgrade cycles, potentially adding billions to Apple’s top line.

This perspective aligns with broader market trends, where Apple’s stock has already seen upward revisions from other firms. For instance, Wedbush Securities recently lifted its target to $310, citing strong pre-order data for the iPhone 17, as reported in a AppleInsider article. Similarly, Evercore ISI increased its outlook to $290, highlighting exceptional sales strength for the Pro Max variant, according to their analysis of early demand signals.

Morgan Stanley’s report, detailed in sources like Yahoo Finance, emphasizes that while the iPhone 17 cycle is off to a stronger-than-expected start—with lead times for Pro models stretching to four weeks compared to three for predecessors—the iPhone 18 could introduce foldables, a category Apple has yet to enter. This move might capture market share from competitors like Samsung, especially as consumers hold onto devices longer, with upgrade rates dipping below historical averages.

Navigating Economic Headwinds: Despite global economic uncertainties, including potential tariffs and currency fluctuations, Apple’s ecosystem strength positions it well. Analysts argue that AI-driven personalization will motivate upgrades, countering any slowdown in hardware refresh rates and fostering loyalty among its billion-plus users.

Industry insiders note that Apple’s strategic timing with Apple Intelligence rollouts plays a crucial role. A TD Cowen report covered by AppleInsider earlier this year suggested Apple has until late 2026 to perfect these features, potentially including generative AI tools that enhance user interaction. Morgan Stanley echoes this, forecasting that such innovations will drive a “renaissance of growth,” with the firm expecting iPhone revenue to climb 4% in fiscal 2026 alone.

Sentiment on social platforms like X (formerly Twitter) reflects this enthusiasm, with posts from analysts and traders highlighting the target hike as a signal of confidence in Apple’s multi-year trajectory. For example, discussions around Morgan Stanley’s note emphasize the potential for foldables to boost average selling prices, aligning with the bank’s projections.

Investor Implications and Market Response: As Apple’s market capitalization hovers near $4 trillion, this target increase could influence portfolio strategies. With shares trading around $255 recently, as per AppleInsider’s latest data, the path to $298 implies significant upside, contingent on executing flawlessly on hardware and software fronts.

Critics, however, caution that external factors like regulatory scrutiny on app ecosystems or supply-chain disruptions could temper this optimism. Yet, Morgan Stanley’s analysis, corroborated by TipRanks, suggests Apple’s installed base—now over 2 billion active devices—provides a resilient foundation. The bank’s model assumes a gradual uptick in upgrades, fueled by AI features that make older models obsolete.

Looking ahead, the interplay between iPhone 17’s immediate appeal and iPhone 18’s speculative innovations could define Apple’s next chapter. As one MarketScreener summary of the report notes, the average analyst target now stands at $249, but Morgan Stanley’s aggressive stance positions it as an outlier betting on outsized growth. For industry watchers, this signals a pivotal moment where Apple’s hardware prowess meets the AI revolution, potentially reshaping consumer expectations for years to come.