**Apple’s Stock Performance and Future Outlook: Insights from Morgan Stanley**
Following a recent 15% rise in its stock price after favorable Q3 2025 earnings results, Apple’s stock is still down 5% for the year. The company reported a revenue of $94.04 billion, representing a 10% increase year-over-year, and benefitted from tariff relief advantageous to its operations. Nevertheless, analysts at Morgan Stanley are noticing a shift in momentum that appears favorable for Apple.
In a recent investor note, Morgan Stanley analyst Erik Woodring remarked that “the Apple story could be turning the corner.” This optimism comes after an 8% rise in the iPhone build forecast for the September quarter, which is due to stronger-than-anticipated sales in June. Woodring pointed out that the decline in iPhone channel inventory below usual levels has forged a major opportunity for channel restocking in the upcoming quarter, especially for the iPhone 16 and Pro Max models.
Woodring commented, “These positive adjustments stem from better than expected iPhone sell-through in the June quarter.” He highlighted that while the adjusted forecast already reflects the increased build, there is room for further upward movement in the December quarter if early demand for the iPhone 17 surpasses projections. Currently, Morgan Stanley is anticipating 78 million units for the holiday season, with a potential for upward revisions.
Aside from hardware sales, Morgan Stanley has identified several often-overlooked factors that may influence Apple’s future performance. These encompass the possibility of an AI partnership or acquisition and the postponed introduction of Apple Intelligence, which could rejuvenate interest in both iPhones and services as flagship features like an updated Siri are set to launch next year. Woodring noted, “In our opinion, Apple is just one potential AI partnership away from significant progress.”
Additionally, Woodring diminished the short-term implications of regulatory hurdles, stating that earlier worries about Section 232 tariffs have proven to be a “non-event.”
As Apple continues to adapt within its market landscape, the question lingers: Will a wider rollout of Apple Intelligence boost iPhone sales? The potential for innovation and strategic collaborations may significantly influence Apple’s direction in the upcoming months.
