Apple stock analysts have differing views on what the record low smartphone upgrades at Verizon in the second quarter mean for iPhone sales.
Wells Fargo analyst Aaron Rakers says it could be a sign that consumers are waiting for Apple's AI-enabled iPhone 16 handsets. Those new smartphones are due out in September.
However, UBS analyst David Vogt thinks it portends soft iPhone demand.
Verizon Communications on Monday reported that just 2.8% of its postpaid wireless subscribers upgraded their handsets in the second quarter. That compares with 3.3% in Q2 last year and 3.1% in the first quarter.
Considering that the iPhone has about 55% market share in the U.S., Verizon's report is a negative for Apple stock, Vogt said.
"Soft results on the postpaid side at Verizon is supportive of our checks that indicate smartphone demand remains sluggish in the U.S.," Vogt said in a client note.
Vogt reiterated his neutral rating on Apple stock with a price target of 190.
Apple Stock Gets Price-Target Hike
Meanwhile, Rakers maintained his overweight, or buy, rating on Apple stock and raised his price target to 275 from 225.
On the stock market today, Apple stock rose 0.5% to close at 226.53.
"We expect the combination of the rollout of Apple Intelligence on the iPhone 16 along with a historically aged iPhone installed base to drive a significant upgrade cycle," Rakers said in a client note.
Rakers also believes the iPhone 16 series will lead to higher average selling prices.
Apple is scheduled to release its fiscal third-quarter results on Aug. 1.
Meanwhile, U.S. wireless carrier AT&T will provide more data on Q2 smartphone sales with its quarterly report late Wednesday.
Apple stock is on the IBD Tech Leaders list.
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