AAPL Downgrades Mount Amid Memory Inflation Concerns

Apple Inc. (AAPL) shares were upgraded by multiple firms following its fiscal third-quarter results, but those upgrades were short-lived as several analysts issued downgrades citing persistent memory cost inflation and slowing services growth.

China Renaissance downgraded Apple to 'Hold' from 'Buy' with a $280 price target after the company's fourth-quarter guidance fell short of expectations. The firm warned that memory inflation is likely to persist for 'several more quarters,' noting that slower growth in Apple's high-margin services business may not be sufficient to offset higher memory costs.

Phillip Securities echoed similar sentiments, stating supply constraints, rising memory costs, and evolving AI regulations continue to weigh on Apple's near-term outlook. The firm also noted there is still no clear evidence that Apple Intelligence is driving a meaningful upgrade cycle for the company's products.