Apple's Downgrade Ignored Historic Quarter Growth
Jefferies downgraded Apple to Underperform with a $263.66 price target on August 10, citing rising memory costs and the cancellation of the all-glass iPhone. However, this bear case is built on shaky ground, as Apple has just posted its strongest June quarter ever.
Fiscal Q3 2026 revenue reached $109.42 billion, up 16.4% year over year, with EPS of $2.02 versus a $1.89 consensus. iPhone revenue surged to $54.25 billion from $44.58 billion, and Services set another record at $30.74 billion.
CEO Tim Cook stated, 'Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment.'
The memory cost panic is overstated, according to supply chain analyst Ming-Chi Kuo. He notes that while tight memory supply is real, Apple plans processor production months in advance, making any shock scenario unlikely.
Furthermore, the all-glass iPhone isn't dead as Jefferies claimed. A Bloomberg report on August 11 contradicts this narrative, stating that Apple's glass-centric iPhone Pro redesign remains on track for the 2027 20th anniversary.