$AAPL: Bernstein Sets $290 Target on Apple Intelligence — Yet $490M Settlement Clouds Outlook
Court: N.D. California
Case: 4:19-cv-02033
Bernstein has restarted coverage of Apple with an Outperform rating and a $290 price target, citing the company’s long-term upside in on-device AI processing. Analyst Mark Newman argues that Apple’s strategy of keeping Apple Intelligence tasks local to devices like the iPhone and Mac enhances security, privacy, and performance, giving it a competitive edge.
Despite lagging rivals in AI and a delayed Siri revamp, Bernstein expects Apple to capitalize on new form factors like Apple Glass and smart rings to expand AI adoption. Still, the optimism comes as Apple continues to deal with the overhang of its $490M settlement tied to misleading investors about iPhone demand in China.
Key Highlights- $290 price target from Bernstein, rating Outperform.
- Apple Intelligence focus on on-device AI tasks for privacy and speed.
- Future growth bets on form factors like Apple Glass and smart rings.
- Lagging rivals: Still behind in Chatbot and contextual Siri features.
- $490M settlement over China iPhone sales misstatements remains unresolved.
Timeline Overview
- Nov 1, 2018 – Tim Cook said China not facing sales pressure.
- Jan 2, 2019 – Apple cut revenue forecast by $9B, citing weak China demand.
- Jan 3, 2019 –
AAPL fell 10% on the disclosure. - Apr 16, 2019 – Investors sued Apple over misleading statements.
- 2025 – Apple agreed to pay $490M to settle the lawsuit.
Allegations Include
- Hiding weak iPhone demand in China.
- Misleading guidance amid U.S.–China trade war.
- Downplaying battery replacement and production cuts.
- Violating federal securities disclosure standards.
Investor Update
Apple agreed to a $490M settlement to end claims that CEO Tim Cook misled investors about China sales. While the payout resolves a years-long dispute, it underscores governance risks and continues to shadow investor confidence as Apple pushes into its next growth cycle with AI-driven products.
You can check more information about it HERE.