Apple Stock Drops 3.6% After WWDC, Morgan Stanley Signals Epic iPhone Upgrade Cycle Ahead

According to Morgan Stanley analyst Erik Woodring, Apple's stock fell over 3.6% on Tuesday following the company's AI announcements at WWDC, yet the analyst sees a larger opportunity investors are overlooking: a historic iPhone upgrade cycle. Woodring raised his price target from $330 to $360, suggesting 20% upside from Monday's close of $301.54.

New version of Siri requires at least 12GB unified memory to support advanced features including on-device contextual understanding and visual intelligence capabilities. Morgan Stanley estimates approximately 1.3 billion iPhones globally lack the hardware specifications to run the new Siri, with 850 million unable to run Apple Intelligence at all, potentially driving substantial device upgrades.