JPMorgan analyst Samik Chatterjee maintained an Overweight rating on Apple Inc (NASDAQ:AAPL) with a price target of $265.

Chatterjee recently surveyed to gauge consumer appetite relative to their interest in purchasing a new iPhone and Apple Watch, including the latest generation products launched in September.

Consumer feedback confirmed his outlook for the iPhone 16 series, which includes a more robust cycle led by higher interest from both upgraders and switchers.

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However, the analyst said upgraders show a lower preference for high-end models than the prior year.  

Chatterjee noted that, in line with global trends, consumers polled in critical geographies, the U.S. and China, expressed greater interest in purchasing a new iPhone in 2024 than in 2023.

He noted the top reasons for buying a new iPhone continue to be a faster device and 5G connectivity, similar to the results for the iPhone 15 Series a year ago. Interestingly, Apple Intelligence features did not make it to the top five reasons to buy the new iPhone but were the sixth top reason, and the analyst noted the staggered launch and limited availability of features for consumers to try are driving this trend.

He said Samsung continues to be the dominant smartphone OEM outside of Apple, while Huawei continues to show dominance in China. The analyst noted a large majority of Android users surveyed in China showed an appetite to switch to Apple.

AAPL Price Action: Apple stock is up 0.29% at $226.83 at publication Wednesday.

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Photo: Courtesy Apple