Barclays raises Apple's price target, says the lower pricing for iPhone is working

Members of the media take photographs of iPhone 11, iPhone11 Pro and iPhone 11 Pro Max smartphones in the Apple Marunouchi store on September 20, 2019 in Tokyo, Japan.
Tomohiro Ohsumi/Getty Images

Apple's decision to make a cheaper iPhone is paying off, according to Barclays.

Despite Apple's shift from a hardware company to a services business model, Apple's historically trusty revenue stream from iPhone sales is surprising to the upside.

The firm raised its price target on the stock to $224 per share from $207 per share. Barclays has an equal weight rating on Apple. This is below Apple's closing price on Wednesday of $234.37.