Apple Inc. (AAPL) stock edged up to around $313.95 in premarket trading on Tuesday as analysts forecast a promising outlook, with Morgan Stanley increasing its price target to $360.

This adjustment is attributed to Apple's remarkable achievement of capturing a record 20% share of the global smartphone market in Q2 2026. This milestone comes amid a broader industry decline, where overall smartphone shipments dropped by 11% year-over-year, marking the lowest levels since 2013. Notably, Apple was the only major smartphone manufacturer that refrained from hiking its prices despite escalating memory costs affecting the supply chain.

Market Performance and Pricing Power

Driven by the launch of the iPhone 17 lineup, Apple remains the top-shipped smartphone brand, showcasing its resilience in a challenging market. Unlike competitors who increased prices due to a shortage of DRAM and NAND memory, Apple opted to maintain its pricing strategy. As a result, while Apple shipments grew by 3% year-over-year, rivals like Samsung and Xiaomi faced substantial declines.

Samgsung regained the top position in overall global shipments with a 24% market share, bolstered by strong sales of the Galaxy S26. Meanwhile, Apple faced a decline in shipments in China, even with promotional activities aligned with the annual 618 shopping festival.

Analyst Erik Woodring from Morgan Stanley highlighted that Apple's demand remains relatively inelastic, suggesting that the company can increase prices without significantly impacting unit sales. This sentiment supports a positive long-term outlook for the stock, especially as expectations grow for a price hike on future iPhone models.

Monness, Crespi, Hardt also affirmed their Buy rating for AAPL with a price target of $335, projecting that the company will report Q3 FY2026 revenues of $109.42 billion, surpassing the market consensus of $108.58 billion. Earnings per share are anticipated to hit $1.95, compared to the expected $1.89.

With the upcoming earnings report set for July 30, investors and analysts alike are keenly watching how Apple navigates through current supply chain challenges while sustaining its growth trajectory.

This article is for informational purposes only and should not be considered financial advice.