Apple Inc. (NASDAQ: AAPL) continues to hold a strong position in the market, according to a recent analysis from Goldman Sachs. On January 20, 2026, analyst Michael Ng reaffirmed a Buy rating on the tech giant’s stock, setting a price target of $320.00. Despite a year-to-date decline of 5% attributed to concerns around commodity cost inflation and App Store performance, Goldman views this dip as a strategic buying opportunity.
Goldman Sachs emphasizes the sustained strength of the iPhone franchise and the expanding Services mix as key factors. The investment firm projects that revenue from iPhones will grow by 9% in both fiscal 2026 and 2027. For the first quarter of fiscal 2026, the earnings per share forecast stands at $2.66, aligning with the consensus from FactSet. The firm anticipates a remarkable 13% year-over-year increase in first-quarter iPhone revenue, driven by a 5% growth in unit sales, including a substantial 26% surge in China.
Future Prospects for iPhone Demand
The outlook for iPhone demand remains optimistic, bolstered by the anticipated launch of the foldable iPhone in late 2026 and a shift to a biannual launch cycle. Goldman Sachs expects this forthcoming innovation, along with new software upgrades, to significantly enhance consumer interest. The iPhone Fold is projected to see sales of 4.5 million units in fiscal 2026 and 25.4 million units in fiscal 2027. Additionally, the introduction of the iPhone 18 and the iPhone Air 2 is expected to be strategically timed, with the latter’s launch postponed from Fall 2026 to Spring 2027.
Goldman noted that while App Store spending growth has slowed to 7% year-over-year in the first quarter, overall Services revenue is forecasted to grow by 14%. This growth is anticipated from various categories, including traffic acquisition costs, iCloud+, and AppleCare+, alongside new advertising formats in the App Store that could provide further momentum.
Partnerships and Market Positioning
The investment bank also highlighted the potential contribution of product price and mix growth to support Apple’s gross margins. The ongoing shift towards Services is expected to mitigate some of the challenges posed by memory cost inflation. Furthermore, the partnership with Google Gemini for Siri, paired with the continued demand for iPhones, reinforces Apple’s dominance in consumer electronics.
Apple’s focus on integrating AI capabilities into its products positions it well in the evolving landscape of technology. As new AI-native consumer hardware enters the market, the iPhone is set to remain the preferred device for accessing innovative tools, alleviating competitive pressures.
While acknowledging the inherent risks associated with investing in AAPL, Goldman Sachs remains confident in the company’s long-term potential. The firm suggests that while some AI stocks may offer greater returns within shorter time frames, the stability and ongoing innovations of Apple make it a compelling investment choice in the tech sector.
