AAPL Downgrades Mount as Wall Street Sees Memory Costs Persisting
Multiple firms downgraded Apple Inc. (AAPL) following its fiscal third-quarter results, citing persistent memory cost inflation and slowing growth in the company's high-margin services business.
China Renaissance was one of the firms to downgrade AAPL stock, lowering its rating from 'Buy' to 'Hold' with a $280 price target after Apple's fourth-quarter guidance fell short of expectations. The firm warned that slower growth in Apple's services business may not be enough to offset higher memory costs.
DZ Bank also downgraded Apple to 'Hold' from 'Buy', assigning a $310 price target, while Phillip Securities cut its rating to 'Reduce' from 'Neutral' and maintained its $290 price target. The firm echoed similar sentiments, noting that supply constraints, rising memory costs, and evolving AI regulations continue to weigh on Apple's near-term outlook.